House Expands Access to Affordable Health Insurance for Unemployed
WASHINGTON – As part of legislation to rescue the American economy, the U.S. House of Representatives today approved measures to expand access to affordable health care coverage for workers who lose their jobs as a result of the recession by a vote of 244 to 188. The Congressional Budget Office and Joint Committee on Taxation estimate that the package would help 8.2 million people keep health care coverage for themselves and their families. “Unemployed workers who have been hit hard by this recession are just one family illness away from bankruptcy,” said Ways and Means Health Subcommittee Chairman Pete Stark (D-CA). “This bill extends coverage to those who need it the most, and sets the groundwork for ensuring coverage for all as we pursue comprehensive health reform this year.”
“It is completely predictable that, in this recession, millions of low-income American workers and their families with lose their jobs and join the ranks of the uninsured. We can’t just sit by and let this happen,” said Rep. Henry Waxman (D-CA), chairman of the Energy and Commerce Committee. “This bill allows states, through their Medicaid programs to provide immediate help to these families until they can find employment. The additional federal funds will help hospitals, physicians, community clinics, and pharmacies make their payrolls and keep the staff they need to continue to serve the newly unemployed.”
“As the unemployment rate continues to grow, so will the number of uninsured,” said Rep. George Miller (D-CA), chairman of the House Education and Labor Committee. “COBRA coverage is a lifeline to millions of Americans and it is crucial that out of work Americans have access to affordable health insurance.”
Under current law, eligible workers may continue to receive health coverage through a previous employer’s health plan for up to 18 months, but are responsible for 102 percent of the cost of that coverage. Three provisions in the American Recovery and Reinvestment Act (H.R. 1) would provide help to these workers by:
- Providing a 65 percent subsidy for COBRA premiums for up to 12 months for workers who have been involuntary terminated between September 1, 2008 and December 31, 2009;
- Making funding available to states that elect to provide Medicaid coverage to unemployed and uninsured individuals and their families; and
- Extending the qualification for COBRA benefits for older and long term workers until they obtain new employer-sponsored coverage or become eligible for Medicare.
To view a fact sheet on these provisions, click here.
For more information on the American Recovery and Reinvestment Act, click here.
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