House Democrats and Teamsters Urge Support for Health Benefits for Trade-Displaced Workers

In a letter sent to President Bush last week, more than two dozen moderate House Democrats criticized the administration for not supporting a proposal in the Senate version of trade negotiating authority legislation that would offer subsidies or tax credits to help workers displaced by international trade to purchase health insurance, CongressDaily/AM reports. "While we strongly support trade, we understand that there are inevitable shifts in our economy that can result in displaced workers who need assistance," they wrote (Norton, CongressDaily/AM, 4/16). The Senate Finance Committee in February approved a bill authorizing fast-track trade negotiation that would also offer trade-displaced workers a 75% subsidy to purchase health insurance through COBRA -- the 1986 Consolidated Omnibus Budget Reconciliation Act, which allows unemployed workers to keep their employer-sponsored health coverage by paying 102% of the premiums. A proposal by President Bush and the trade bill passed in the House last December do not contain any health insurance provisions, but some Republicans have suggested they would support a tax credit that would cover up to 60% of the cost of trade-displaced workers' health insurance (Kaiser Daily Health Policy Report, 4/10).

Teamsters Back COBRA Benefits
The Teamsters Union said that while it opposes extending the president's trade negotiating authority, it supports a health care subsidy and will work to pressure House legislators to support such a measure. A Teamsters official said, "For us, it has to be COBRA with a 75% (government) subsidy," adding that the Republican proposal for a tax credit is "unacceptable." The union hopes to use its "growing relationship" with the Bush administration to win White House support for the subsidy, CongressDaily/AM reports (Mitchell, CongressDaily/AM, 4/16).