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State Representative Paul Thissen

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100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5375

For more information contact: Sandy Connolly 651-296-8877

Posted: 2010-01-12 00:00:00
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Press/News Releases

THISSEN BILL MAKES COBRA AFFORDABLE FOR UNEMPLOYED MINNESOTANS



St. Paul, MN – For thousands of recently unemployed Minnesotans, securing ongoing health care benefits is one of the toughest challenges they face. The one option that is currently available, Continuation of Health Coverage, otherwise known as COBRA, is simply too expensive for most families. According to a report put out by Families USA, the average monthly COBRA premium in Minnesota is $1,232. As a result, it is estimated that only 20% of those who qualify for CORBA actually buy it.
Last session, State Rep. Paul Thissen, Chair of the Health and Human Services Policy Committee, authored HF42, a bill that sought to help unemployed Minnesotans maintain their health care coverage. The legislation that ultimately became law provided a 35% state COBRA premium subsidy to unemployed individuals otherwise eligible for a Minnesota Health Care Program. The state subsidy supplemented a federal 65% subsidy enacted to help unemployed Americans afford their COBRA premiums. As a result, nearly 2,000 Minnesota families were able to keep their private health insurance since the program went into effect last July.
The federal government recently authorized a six-month extension of the 65% COBRA subsidy. This week, Rep. Thissen introduced legislation to once again match the federal legislation by extending the state subsidy for another six months.
“Losing a job is challenging enough without the additional pain of losing health insurance benefits for yourself and your family," said Thissen. “While there are some early signs of economic recovery, the job market remains weak, and thousands of Minnesotans have not yet gone back to work.
This extension will give them the peace of mind that for a few more months, at least, they can continue to provide health care coverage for their families.”
Thissen said there are also significant savings to the state when families are able to stay on their private insurance instead of being covered by MinnesotaCare.
While Thissen acknowledged this extension is only a temporary fix, if the national health care reform bill now in Congress passes, unemployed Americans will be able to purchase affordable health insurance through a newly created marketplace, called an exchange.
“We must continue to move forward on fundamental, sweeping reform of our health care system,” said Thissen. “But for those Minnesota families who are facing the many challenges brought on by the loss of a job, this is one small step we can take that will allow them to maintain health security during these uncertain economic times.”
The state legislature will reconvene on February 4th.

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