Franken on Extending COBRA Benefits

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Delivers Floor Speech in Favor of Health Care Benefits for Jobless WorkersWashington, D.C. -- Nov 19, 2009 – U.S. Senator Al Franken (D-Minn.) today spoke from the Senate floor in support of the COBRA Subsidy Extension and Enhancement Act, which would allow jobless workers to keep their health care while they sought new employment.

The text of his remarks follows:

Statement on the COBRA Subsidy Extension and Enhancement Act
Senator Al Franken

Mr. President, I rise today to urge my colleagues to support S.2730, the COBRA Subsidy Extension and Enhancement Act. As you may know, COBRA allows jobless workers to keep their health care as they look for new work. The Recovery Act included a COBRA subsidy through the end of this year, but if we fail to act, millions of Americans currently looking for work will be faced with a further, unbearable burden—the tripling of their COBRA payments.

Now, I’m very pleased with the Senate Patient Protection and Affordable Care Act that was released yesterday. This bill will help bring down health care costs for families and the federal government. We’ll invest in prevention and provide incentives for doctors to provide high-quality health care.

I commend Leader Reid, Chairman Harkin, Chairman Baucus, and Senator Dodd for moving us one critical step closer to secure, affordable health care for all Americans. But while health reform will bring long-term relief, the proposed COBRA extension will help us bridge the gap before health reform is fully implemented.

Take for example the situation of one of my constituents, Gregory, from Lakeville, Minnesota. Gregory has built a professional career in the printing industry. His industry has been especially hard hit by our current recession. Gregory’s wife depends on him for health insurance—she has rheumatoid arthritis. He also has two daughters in school.

Gregory was laid off this March, and has been tirelessly looking for a job ever since. But, there just aren’t any jobs to be found. He has accepted that he may have to change fields—but he’s 57 years old, and a career change at 57 isn’t easy. Unless Congress passes a COBRA extension, his premiums will nearly triple—going from $350 per month to $940 per month. In today’s dismal economy, who has $940 each month to spend on health insurance, especially if you don’t have a job?

Gregory has explored the option of a private insurance plan, but his wife’s pre-existing rheumatoid arthritis makes private plans an impossibility. Gregory is hopeful – as am I – that passing a health reform bill will eliminate this problem, but in the meantime—what are families like Gregory’s supposed to do?

Gregory’s family is not alone in this plight. CBO estimates that 7 million workers and their families have used the COBRA subsidies in 2009. That includes thousands of Minnesotans. The expiration of the subsidy will make premiums so expensive that many families will be forced to drop their coverage, adding further to the number of uninsured Americans. Now is not the time to put another burden on struggling families.

The COBRA Subsidy Extension and Enhancement Act will provide relief to families by extending the COBRA subsidy another six months, through June of 2010. By that time, our economy will have made significant progress in job creation, and many Americans will be back on the job. The extension will also include an increase in the subsidy—from 65% to 75%, allowing more families to retain coverage.

During this recession, the last thing Congress should do is pull the plug on benefits before folks have had a chance to get back on their feet.

I know my colleagues, Senators Brown and Casey, share the same goal of passing meaningful health reform this year. But they also know the importance of providing a stop-gap measure to deliver relief to families who are struggling in the current downturn. I want to thank them for their leadership on these critical issues.

I urge my colleagues to swiftly enact the COBRA Subsidy Extension and Enhancement Act, and allow more families to maintain health insurance coverage as they look for work. Thank you, Mr. President, and I yield the floor.

Source: Senator Al Franken