Lawmakers are considering extending a state subsidy program that helps some unemployed workers keep their health care coverage.
The subsidy helps laid-off workers pay private health care premiums for federal COBRA coverage, thereby keeping them off state programs, said Rep. Paul Thissen (DFL-Mpls). He sponsors
HF2562, which would update Minnesota law to reflect COBRA changes enacted by Congress late last year.
Approved Feb. 9 by the House Health Care and Human Services Policy and Oversight Committee, the bill now awaits action by the House Health Care and Human Services Finance Division
The federal legislation extends a 65 percent premium subsidy to eligible workers who lose their jobs before Feb. 28, 2010. It also extends the time period that workers can receive the subsidy to 15 months.
Thissen would like Minnesota to make similar changes to the 35 percent premium subsidy it offers some residents with COBRA coverage. His bill would extend the availability of the state subsidy through May 2011 and allow funds appropriated in fiscal year 2010 to carry over into fiscal year 2011.
For laid-off workers, the loss of health care coverage can be worse than the loss of income, said Mike Goldman, labor liaison to the Minnesota Dislocated Worker Program. These workers and their families face the challenge of paying for health care on top of other expenses like mortgage payments and putting food on the table, he said.
“The loss of the state subsidy is going to be a crucial breaking point for many families,” he said.
The Department of Human Services has approved approximately 1,700 Minnesota households for the state premium subsidy. Goldman said it is a resource available to some unemployed workers, but not to all.
A companion bill,
HF2335, sponsored by Sen. Linda Berglin (DFL-Mpls), awaits action by the Senate Health and Human Services Budget Division.
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