COBRA enrollments doubled since February

A recovery act provision appears to have made COBRA more attractive and affordable to qualified Americans.

An analysis by Hewitt Associates, released Tuesday, found that 38 percent of eligible COBRA recipients enrolled in the health care insurance program from March to June. That was up from 19 percent of those eligible who enrolled from September through February.

The American Recovery and Reinvestment Act of 2009 granted a nine-month COBRA subsidy to eligible participants.

Previously, involuntarily terminated workers were required to pay 100 percent of the COBRA health care premium plus 2 percent for administrative costs. The subsidy makes them responsible for 35 percent of the COBRA premium.

Hewitt research indicated that's an average cost reduction from $8,000 to $3,000.

But researchers noted that even the lower COBRA cost is higher than the average contribution made by workers who cover part of their employer-sponsored health insurance premium. That averages $1,900 a year.

"The average American may still find it difficult to pay for this benefit when they have less income coming in, which is perhaps why enrollment numbers didn't jump higher," said Karen Frost, Hewitt's health and welfare outsourcing leader.