Bill Would Extend COBRA's Hand
November 2, 2009 (PLANSPONSOR.com) - Legislation has
been introduced in the U.S. House of Representatives that
would extend COBRA provisions for workers who are
involuntarily terminated.
Under H.R. 3930, introduced last week by Congressman Joe
Sestak (D-Pennsylvania), the COBRA subsidy contained in the
recent economic stimulus bill would be provided for up to
15 months, and those laid off from January 1, 2010, through
June 30, 2010, would also be eligible for subsidy,
according to Business Insurance.
Under the current provision, the the federal government
pays 65% of COBRA health care premiums of employees who are
involuntarily terminated.
The current subsidy is available for up to nine months
for employees who have lost their jobs since September 1,
2008 (see
H.R. 1 Contains COBRA Provisions
). Unless the law is extended, the subsidy will not be
available to employees laid off after December 31, 2009,
and - without an extension of the current law, employees
who began collecting the subsidy on March 1, when it first
generally became available, will lose it at the end of this
month.
"Losing one's job is difficult enough. But
losing one's health care along with it—and worrying
about being able to get treatment for oneself and one's
family, or fearing bankruptcy in the event of injury or
illness—is something Americans should not have to cope with
in this difficult time," Congressman Sestak said in
statement, according to Business Insurance.
A recent analysis from Hewitt Associates clams that from
March 2009 to June 2009, monthly COBRA enrollment rates for
Americans eligible for the subsidy averaged 38%, up from
19% for the period of September 2008 through February 2009,
while companies in the industrial manufacturing industry
saw an 800% increase in COBRA enrollments since the subsidy
was enacted, and enrollments for companies in the
construction, leisure, and retail industries tripled
(see
COBRA Enrollments Doubled Since Subsidy Enacted
).
Nevin E. Adams
editors@plansponsor.com