Stimulus Talks Commence; Disagreement Remains over Health Benefits for Unemployed

House and Senate lawmakers on the evening of Dec. 4 began negotiations on an economic stimulus bill, which will likely include provisions to help unemployed workers purchase health insurance, and say they hope to reach an agreement before the holiday recess, the Washington Post reports. The legislators met for 90 minutes on Dec. 4 to address organizational issues and on Dec. 5 plan to begin "substantive dealmaking" (Kessler, Washington Post, 12/5). The House approved economic stimulus legislation in October, but the Senate has not passed a bill, "so the traditional rules of working out an agreement in conference do not apply." As a result, "special procedures were necessary" to agree on the terms of negotiations on the bill (Kaiser Daily Health Policy Report, 11/30). After "days of wrangling," lawmakers on Dec. 3 agreed to appoint a negotiation team made up of six lawmakers -- one Senate and two House Republicans, and one House and two Senate Democrats -- to debate tax and unemployment provisions. A second group of six lawmakers from the two chambers will address Medicaid provisions in the proposed legislation (Kaiser Daily Health Policy Report, 12/4). Rep. John Dingell (D-Mich.) will represent House Democrats on Medicaid issues, while members of the House Energy and Commerce Committee, which has jurisdiction over Medicaid issues, will likely represent House Republicans. CongressDaily does not report which senators will participate in the process (CongressDaily, 12/4).

Differing Bills
Democrats support an economic stimulus bill that would provide health insurance subsidies directly to unemployed workers, while Republicans "would give states money for that purpose and let them spend it as they please" (Lightman, Hartford Courant, 12/5). "For us it's very simple. We need unemployment compensation. We need health care," Senate Majority Leader Tom Daschle (D-S.D.) said (Washington Post, 12/5). Last month, Senate Democrats proposed a bill, blocked by Senate Republicans, that would have provided $14.3 billion to extend benefits for unemployed workers by 13 weeks and $12.3 billion to help unemployed workers purchase health coverage through COBRA. COBRA, the 1986 Consolidated Omnibus Budget Reconciliation Act, allows unemployed workers to retain health coverage under their former employers' insurance plans by paying 102% of the premiums. In addition, the legislation would have allowed states to extend Medicaid coverage to unemployed workers who do not qualify for COBRA and provided $1.4 billion to boost the federal match to states for Medicaid (Kaiser Daily Health Policy Report, 11/15). The House in October approved a different $100 billion GOP-sponsored bill, supported by President Bush, that would increase by $3 billion funding for the Social Services Block Grant program to allow states to provide health insurance to unemployed workers and their families (Kaiser Daily Health Policy Report, 10/29).