The survey, conducted by Chicago-based publisher and research organization Charles D. Spencer & Associates Inc., found that COBRA premiums charged by employers averaged $501.71 per month, up 22.3% over 2000. The average figure combines premiums charged for single and family coverage. Under federal law, employers can charge COBRA beneficiaries a premium equal to 102% of the group rate for active employees.

The survey results, based on the responses of 180 employers, found that just 16.2% of eligible beneficiaries opted for COBRA, down from 19.5% in 2000.

Employees who opted for COBRA due to termination of employment or reduction in the number of hours received COBRA for an average of 10.4 months. Under law, COBRA coverage must be offered for a maximum of 18 months for such qualifying events.Dependents who took coverage due to death, divorce or marital separation did so for an average of 22.6 months, compared with the maximum coverage period of 36 months.

Average claims costs for COBRA beneficiaries exceeded claims costs of active employees by 50%, a percentage that has remained relatively constant since Spencer first conducted the survey in 1989.

Copies of the survey are available for $35 at http://www.businessinsurance.com/cgi-bin/www.spencernet.com/extras/329_04_1.html