Kansas Governor Sebelius Signs Bill Extending Health Coverage For The Unemployed

American Recovery Act funds will help out of work Kansans keep their health care

April 14, 2009 --

Kansans who have recently lost their jobs may not have to lose their employer-provided health care thanks to a bill signed by Kansas Governor Kathleen Sebelius; HB 2052 accesses American Recovery Act funds aimed at helping out of work Kansans keep their health care through 2010.

“Our economy will never be as strong as it can be if we don’t address the burden that health care costs put on businesses, workers and families,” Sebelius said. “That’s why this section of the American Recovery and Reinvestment Act is critical to getting our economy back on track.”

“This provision will make the continuation of health insurance coverage possible for many Kansans who might otherwise not be able to afford it,” said Kansas Insurance Commissioner Sandy Praeger.

“Reduced costs for COBRA coverage will help to keep Kansas families insured through these tough economic times. We know that insured children receive preventative care and have lower long-term health costs,” said State Treasurer Dennis McKinney. “This will also benefit Kansas doctors and clinics, because they will have fewer unpaid accounts.”

HB 2052 amends the state continuation of coverage law (Kansas COBRA) to incorporate provisions and requirements of the American Recovery and Reinvestment Act of 2009. The Recovery Act requires employers of eligible terminated employees to provide additional notice of the right to elect COBRA coverage. The Recovery Act includes a sixty-five percent premium subsidies for COBRA coverage. The benefit is initially to be paid by insurance companies who will then have the right to reimbursement under The Recovery Act. The continuation of coverage provisions would expire on January 1, 2011.

Source: Kansas Governor