COBRA Enrollment Doubles After Launch of Subsidy Program

Enrollments in COBRA (health continuation coverage) rose from less than 20 percent to nearly 40 percent since the U.S. government enacted a new subsidy program, according to a report by Hewitt Associates, a consulting firm.
Signed into law in February 2009, the American Recovery and Reinvestment Act of 2009 (ARRA) provides for a 65 percent subsidy for COBRA continuation premiums for up to 9 months for workers who have been involuntarily terminated. To qualify for the subsidy, individuals must have a qualifying event for COBRA coverage that is the employee's involuntary termination during the period beginning September 1, 2008 and ending December 31, 2009.