Labor & Employment Law

COBRA Participation Has Doubled Since Passage of ARRA

The ARRA's COBRA subsidy, which provides reduced COBRA charges to eligible individuals has prompted about twice as many eligible participant to elect COBRA than otherwise would have without the subsidy.  The Joint Commission on Taxation estimates that about 7 million people will use it for some part of 2009.  And, according to the Kaiser Family Foundation with the subsidy, the average family pays $377 a month and the cost will increase to $1,078 a month without it.

Participants are generally eligible for the the subsidy for 9 months.  So, for those who took it in February when it began, it will run out in November. 

Full post as published by Strategic HR Lawyer on September 01, 2009 (boomark / email).