Democratic senators are pushing for approval to reinstate expired COBRA health care premium assistance. U.S. Sens. Bob Casey, D-Penn., and Sherrod Brown, D-Ohio, and 14 other senators introduced an amendment to the American Jobs and Closing Tax Loopholes Act of 2010, a bill currently under consideration on the Senate floor.
The Casey-Brown amendment would extend the COBRA premium subsidy program through November 30.
Facing pressure from fiscal conservatives, the U.S. House of Representatives passed a bill before the Memorial Day recess that excluded the federal subsidy that paid for 65 percent of a laid-off employee's health insurance payment for 15 months.
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"Millions of Americans have been hard hit by the recession and lost their jobs through no fault of their own," said Sen. Casey. "Unfortunately, some people in Washington want to pull up the ladder and take away help for these struggling families. Not extending COBRA premium assistance will hurt hundreds of thousands of people in Pennsylvania and across the country and it will add further strain on our recovering economy."
Congress has extended the eligibility four times, with the latest extension reaching through May 31.
According to nonprofit Families USA, COBRA coverage averages $387 a month nationally with the help of the subsidy, enacted in February under the American Recovery and Reinvestment Act. Unless Congress passes an extension retroactively, those laid off after June 1 will be unable to qualify for COBRA subsidies.
Without this federal assistance, Families USA reports health insurance premiums will skyrocket to an average of $1,107 a month for unemployed families. This means most of the money (84.3 percent) coming from unemployment insurance will go directly toward family health coverage.
"We need to prevent unemployed workers for joining the rolls of the uninsured," Brown said. "When there are few jobs to be had, the inability to afford COBRA premiums becomes an even more acute problem. I've received letters and emails from Ohioans who describe how COBRA is more expensive than rent or food. That's why we need to extend this subsidy for workers who have recently lost their jobs."
The amendment to extend COBRA premium assistance is also cosponsored by Sens. Pat Leahy, D-Vt.; Carl Levin, D-Mich.; John Kerry, D-Mass.; Tom Harkin, D-Ind.; Daniel Akaka, D-Hawaii; Ron Wyden, D-Ore.; Frank Lautenberg, D-N.J.; Jack Reed, D-R.I.; Debbie Stabenow, D-Mich.; Sheldon Whitehouse, D-R.I.; Mark Begich, D-Ark.; Roland Burris, D-Ill.; Kirsten Gillibrand, D-N.Y.; and AL Franken, D-Minn.
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