The U.S. House of Representatives, on its rush to adjourn before the holiday break, passed a patchwork of bills that included an extension of COBRA health insurance subsidies for Americans who have lost their jobs. The matter is now before the Senate, which is also expected to act quickly on COBRA before the premium aid program expires at the end of the year.

 

In the climate of massive layoffs earlier in 2009, Congress had stepped in to change the existing Consolidated Omnibus Budget Reconciliation Act program to allow for the government to match 65% of an unemployed person's premiums. That help lasts for nine months per individual, but the subsidy program is set to end Dec. 31. The bill that has now passed the House extends that nine-month period to 15 months. Even those who have already run past their nine months and have lost their insurance could get it back for the remainder of the 15-month period.

 

"We supported the COBRA part of the stimulus package earlier this year, and we support this extension as well," said Robert Zirkelbach, spokesman for America's Health Insurance Plans."We think it's important than individuals be able to maintain their health care coverage during the economic slowdown."

 

COBRA, established in 1986, is an 18-month program offering laid-off workers continuing access to group plans. With millions unemployed, the American Recovery and Reinvestment Act enacted in February helped keep 7 million -- according to House Appropriations Committee Chairman David Obey -- on the health insurance rolls. A survey by Hewitt Associates demonstrated that between March and June, enrollment rates for COBRA were at 38% of those eligible, up from 19% between September 2008 and February, before the subsidy.

 

The U.S. Department of Labor's rule for which employer plans require COBRA covers all but the smallest plans: "Group health plans for employers with 20 or more employees on more than 50% of its typical business days in the previous calendar year are subject to COBRA."

 

"When people are facing tough times -- particularly if they lose their job -- the last thing they should have to worry about is whether or not they have health care coverage," Zirkelbach said.

 

The newly passed House legislation was embedded within the appropriation for the Department of Defense, along with a number of other non-defense issues, including an extension of the National Flood Insurance Program, provisions of the Patriot Act and an extension of unemployment benefits.