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A bill proposing to extend COBRA health insurance benefits from 18 to 36 months for the recently unemployed was passed in the State Senate Insurance Committee earlier this month, and now awaits approval from the Finance Committee – which could take some time given the current state of the State Senate.

COBRA is a nationwide law which obliges employers to provide some employees the opportunity to extend their company health coverage for a period after employment. In addition to doubling the period of coverage, the bill would also ensure that small businesses with fewer than 20 employees are eligible for the COBRA coverage.

Though extended coverage will surely benefit many in need of health insurance, the influx of COBRA participants will cost companies big money, according to Mary Clark, vice president for health and welfare at Cammack LaRhette Consulting. Clark said that the average COBRA enrollee costs 50 percent more than current employees, the reason being that unemployed people who enroll in COBRA tend to be people with health issues. They enroll because they know they use their health coverage, more so than current employees who have the expendable cash for health coverage. With extra people enrolled and actively using coverage, the company’s premium it pays to health providers rises. According to Clark, the added cost may eventually be passed on to other insurance group participants.

“When you think about it,” said Clark, “the people who are actively working for the employer are going to have to pay down the line for the COBRA participants –- the people who are not working for the employers anymore. And this is why there is a limit. Because it’s not something you want to offer forever.”

The bill is the second piece of legislation in recent months to provide extra coverage for the recently unemployed. Another bill was signed into law in March for New Yorkers who lost their jobs at small businesses, who now qualify for federal benefits that pay up to 65 percent of their COBRA insurance premiums. The program uses funds from the federal stimulus bill.