CAPITOL HILL REPORT
This op ed appeared in the Winter 2010 Edition of "To Your Good Health." 

Even as Congress was dealing with the issue of health insurance reform, the unfortunate reality existed that many people continued to face the abrupt loss of healthcare benefits because of unexpected unemployment. This is why I co-sponsored legislation to provide continued health insurance for those who have lost their jobs during this recession.

According to the Kaiser Family Foundation, approximately 60 percent of all Americans receive health insurance coverage through their employer. On average, employers cover 83 percent of the cost of premiums for individual plans, and 73 percent of the cost of family health care plans.

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) ensures that employees who would otherwise become uninsured due to changes in employment status are able to keep their employer-sponsored coverage, typically for 18 months. COBRA coverage is available to employees of companies with 20 or more full-time workers.

However, under COBRA, these individuals are responsible for paying the full cost of their health premiums, up to 102 percent of the total premium cost. Those costs averaged to $13,375 for a family in 2009, which is unaffordable for many Americans, particularly those who have lost their income.

In 2008, more than two million people lost employer sponsored coverage and 700,000 became uninsured. In March 2009, Congress addressed the issue of unemployment and high premium costs under Title III of the American Recovery and Reinvestment Act (ARRA), which included a nine-month, 65 percent subsidy for COBRA premiums. The subsidy is available to individuals who were involuntarily terminated on or after September 1, 2008, and before January 1, 2010 and meet the income test (those whose same-year income does not exceed $125,000-$145,000 for an individual or $250,000-$290,000 for married couples).

In December 2009, as the eligibility period drew to a close, and the subsidy neared expiration for those who signed up in March or April, Congress passed a two-month subsidy extension to ensure individuals and families could continue to obtain health insurance through the winter months.  However, although the recession is officially over, employment and affordable health coverage remain elusive for millions of Americans. This is why I have co-sponsored two bills that will extend eligibility for COBRA and for subsidized premiums, the Extended COBRA Continuation Protection Act of 2009 and an amendment to the ARRA legislation of 2009.

The Extended COBRA Continuation Protection Act, sponsored by Representative Joe Sestak (D-PA), will have three major benefits by extending:

The nine-month COBRA subsidy under ARRA by half a year to 15 months, allowing workers who enrolled in the program in February and remain unemployed or underemployed to continue until at least May 2010;
The eligibility for premium subsidies to those involuntarily terminated between January 1 and June 30, 2010;
And 18-month eligibility for regular COBRA coverage by an additional half year to 24 months.
No COBRA premium assistance or extended COBRA benefits would be available after December 31, 2010. H.R. 3966, introduced by Andre Carson (D-IN), amends ARRA by extending the eligibility period during which a terminated individual can receive the 65 percent subsidy. Since ARRA originally provided subsidies to those involuntarily terminated between September 1, 2008 and December 31, 2009, this measure would make subsidies available to those involuntarily terminated through June 30, 2010.

The House-passed health reform bill, H.R. 3962, contains a COBRA provision that would allow all COBRA-eligible individuals to elect this coverage until the insurance clearinghouse—the “Exchange”—is up-and-running. Extending COBRA coverage and the 65 percent subsidy through the end of 2010 will help families still facing unemployment receive a basic and necessary level of health care.

It is important to remember, however, that despite its extension, COBRA is a temporary Band-Aid for those without healthcare coverage. It is expensive, inconvenient, and a short-term solution. This is one of the many reasons that I still support a single-payer healthcare system. Workers should not have to face a relentless cycle of confusion and anxiety regarding the status of their healthcare coverage and the potentially devastating impact unemployment could have on their health and the health of their children.

Bill Delahunt represents the 10th Congressional District of Massachusetts in the U.S. House of Representatives.