$2 Billion Paid in COBRA Subsidy Benefits

July 27, 2010

Covered 2 million households

The Treasury Department has provided its interim report on the COBRA subsidy from data collected from Form 941 for 2009. Form 941 is the form employers file to report their subsidy expense and are then allowed a credit against their payroll taxes for the 65% of the premium not paid by the individual. Over 300,000 claims for subsidy refunds were filed through early 2010 totaling just over $2 billion dollars.

The Congressional Budget Office originally estimated that the subsidy would cost around $14 billion. It is thought the inability of individuals to pay their portion of the premium accounts for the lower than expected participation. The subsidy expired on May 31, 2010.

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