The Employee Benefit Research Institute (EBRI) released an analysis in its October newsletter, suggesting the American Recovery and Reinvestment Act’s (ARRA) 65 percent COBRA subsidies helped fewer individuals than the federal government anticipated.  The analysis notes that, when Congress approved the ARRA, the Congressional Budget Office (CBO) estimated that ARRA COBRA subsidies would assist 7 million individuals at a cost of $14 billion. 

 

From the report:

This article examines trends in coverage through a former employer. There is conflicting evidence as to the effect of the subsidies on the take-up of COBRA coverage. This article examines that evidence and also reports the findings from recently released government data that can be used to track health insurance coverage from a former employer. It was found that by August 2009, the COBRA subsidies had had an impact on the percentage of nonworking adults with coverage through a former employer, but it was not as large as the initial estimate that ARRA would assist 7 million people with COBRA subsidies during 2009.

Full Report: The Impact of the COBRA Premium Subsidy on Coverage (PDF | 766 KB)   

Employee Benefit Research Institute. (2010). The impact of the COBRA premium subsidy on coverage. Fronstin, P.