What impact has the premium subsidy had on the COBRA opt-in rate?
A Hewitt Associates Inc. survey of 200 large employers released in August 2009 found that the opt-in rate of involuntarily terminated employees doubled since the subsidy program began. From March 1, 2009—when the subsidy generally became available—through June 30, 2009, monthly enrollment rates for laid-off employees averaged 38%, Hewitt found. By contrast from Sept. 1, 2008, through February 2009, an average of 19% of involuntarily terminated employees were enrolled in COBRA.
