Sen. Dayton Introduces Bill that Would Cover 75% of COBRA Costs for Unemployed

One day after economic stimulus legislation reflecting similar concerns died in the Senate, Sen. Mark Dayton (D-Minn.) on Feb. 7 introduced a bill (S 1916) that would help laid-off workers pay for health insurance, the Minneapolis Star Tribune reports. Under the bill, the federal government would pay 75% of health insurance costs for up to one year for unemployed people who are eligible for benefits through COBRA, the 1986 Consolidated Omnibus Budget Reconciliation Act, which allows unemployed workers to retain health coverage under their former employers' insurance plans by paying 102% of the premiums. The bill would also allow states to extend Medicaid coverage to unemployed workers who are not eligible for COBRA (Hotakainen, Minneapolis Star Tribune, 2/8). The two provisions of Dayton's bill are similar to components of the Democratic version of economic stimulus legislation, which also contained a number of non-health-related financial provisions targeted at businesses and individuals. Senate Republicans blocked that bill last November (Kaiser Daily Health Policy Report, 11/15/01). A compromise stimulus package proposed by Sen. Tom Daschle (D-S.D.) and the House Republican stimulus package died Feb. 6 in the Senate (Kaiser Daily Health Policy Report, 2/7).

House GOP Plans
Meanwhile, Republicans in the House are "mulling" a proposal to attach some or all of their failed economic stimulus bill to legislation proposed by Daschle that would extend unemployment benefits to displaced workers by 13 weeks (Richmond Times-Dispatch, 2/8). Daschle's bill passed the Senate by voice vote on Feb. 6 (Kaiser Daily Health Policy Report, 2/7). Among the items they may attach to the bill is a tax credit to help displaced workers purchase health insurance (Richmond Times-Dispatch, 2/8).