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State Representative Joe Atkins

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100 Rev. Dr. Martin Luther King Jr. Blvd.
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Posted: 2009-04-29 00:00:00
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Press/News Releases

HOUSE GIVES OUT-OF-WORK MINNESOTANS SECOND CHANCE ON HEALTH CARE COVERAGE


ST. PAUL, MN - With over a quarter of a million Minnesotans out of work, the House passed an important measure (HF2138) today giving laid off workers a second chance at purchasing cheaper COBRA health care coverage with the help of the American Recovery and Reinvestment Act.

“We passed a bill today that is going to give out-of-work Minnesotans a chance at more affordable health care they wouldn’t otherwise have had," said House Commerce and Labor chair Rep. Joe Atkins.

Prior to the passage of the Federal Recovery Act, unlike Minnesota’s mini-COBRA the Federal COBRA program only applied to businesses with 20 employees or more. Additionally, if laid-off workers in Minnesota wanted to purchase COBRA health care coverage they had to cover 100% of the cost on their own.

COBRA coverage can cost more than $1,000 per month. With the average unemployment check totaling only $324 per week, health care coverage was simply out of reach for many unemployed Minnesotans. That’s why Congress and President Obama approved a new measure compensating 65% of the cost of COBRA for every laid-off worker nationwide, and covering every worker eligible under mini-COBRA plans in states like Minnesota.

“Helping pay the cost of COBRA put quality health care coverage within reach for millions of Americans, and helped thousands of Minnesotans employed by small businesses who wouldn’t otherwise have been eligible for that assistance.” said Atkins. “Unfortunately, what it didn’t do was help those who were laid off prior to the change.”

Current law states that if a laid-off worker turns down COBRA coverage (because of affordability, eligibility, or any other reason), he or she does not get a second chance to enroll in the program. Atkins’ bill would change that requirement, giving Minnesotans who turned down COBRA or weren’t eligible before ARRA was passed, a second chance at purchasing the now more affordable health care plan.

“One thousand Minnesotans are losing their jobs every week. Many of those people are losing their employer-based health care too,” said Rep. Atkins. “As more and more Minnesotans face unemployment, the number of uninsured people in our state continues to rise. We acted today to minimize the number of uninsured in Minnesota, and help give laid-off workers the coverage they need at a time when they need it most.”

Atkins’ bill passed with unanimous support.

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