NEW REPORT: Pandemic-era COBRA Subsidies Provided Critical Health Coverage Amidst Historic Job Losses
New findings show swift implementation of pandemic-era COBRA subsidies offered crucial relief to workers and their families.
WASHINGTON – Today, the Government Accountability Office (GAO) released a new report detailing how the swift implementation of pandemic-era COBRA subsidies by the Biden-Harris Administration offered crucial relief to workers and their families. The report reveals that these subsidies slashed health insurance premiums by $1.2 billion, providing a lifeline to workers across more than 30,000 businesses in industries such as manufacturing, health care, construction, entertainment, and retail.
Four years ago, the economy was in freefall in the wake of the COVID-19 pandemic and gross mismanagement by the previous administration. In 2021, the Biden-Harris Administration and Congressional Democrats passed the American Rescue Plan. It provided relief to individuals who lost their jobs or had their work hours reduced during the pandemic by temporarily eliminating COBRA premiums for affected workers.
COBRA enables individuals who have been laid off or left their jobs to continue their employer-sponsored health insurance, though they typically must pay the premiums themselves. As the pandemic raged on, many individuals relied on COBRA during periods of unemployment or reduced hours in order to avoid disruptions in coverage, maintain continuity of care with their health provider, and avoid restarting a deductible mid-year. The American Rescue Plan ensured that workers and their families could access this option without paying any premiums during a time of economic disruption.
Ranking Member Scott stated, “The report underscores the phenomenal work done by the Biden-Harris Administration, the Department of Labor, and the Department of the Treasury to successfully and quickly implement this crucial program. When a crisis arises, Democrats are committed to stepping up and supporting workers and their families. The COVID-19 pandemic was a once-in-a-century challenge, and through smart policy decisions, Americans could afford the life-saving care they needed.”
The swift implementation of the COBRA subsidies serves as a testament to the power of smart policy decisions in a national emergency, which allowed individuals to maintain access to health care amidst the turmoil of the pandemic. This report highlights the critical work of public servants such as the Department of Labor’s Benefits Advisors, who worked tirelessly to help Americans access this critical financial support.
To read the full report entitled, “Private Health Insurance: Premium Subsidy During COVID-19 Was Implemented under Tight Timeline” click here.
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