Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Health Insurance > Health Insurance

Spencer's: COBRA Was Broken

Your article was successfully shared with the contacts you provided.

In 2008, before Congress created the new 65% group health benefits continuation subsidy, few eligible departing workers were signing up for COBRA benefits, a research service reports.

Spencer’s Benefits Reports, Riverwoods, Ill., says about 17% of U.S. employees became eligible for continuation benefits under the Consolidated Omnibus Budget Reconciliation Act in 2008.

Only about 9.7% of the departing workers who were eligible for COBRA benefits signed up for coverage, according to Spencer’s, a unit of Wolters Kluwer.

For employers, COBRA cost an average of about $11,000 per participant, up 32% from $8,353 in 2004.

That compares with an average benefits cost of about $7,200 per year for active employees, Spencer’s says.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.