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Federal health-care subsidy for unemployed to expire
Published: November 25, 2009
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share thisA federal stimulus bill program that subsidizes health-care benefits for unemployed workers will expire by the end of the year unless Congress acts to extend it, U.S. Sen. Bob Casey said Tuesday.
With unemployment "incredibly high," Casey said the bill would extend the program through June 30.
The bill, introduced by Sen. Sherrod Brown, D-Ohio, would also increase the amount of the subsidy from 65 to 75 percent of health insurance premiums and would include people who have had their work hours reduced rather than only those who are unemployed.
For the unemployed, the monthly cost of maintaining family insurance coverage in Pennsylvania is about three-quarters of monthly unemployment benefits, Casey said.
"Some people have told us that even with the 65 percent subsidy, it's not enough to make ends meet," Casey, a Democrat, said during a conference call with reporters.
Casey and Sen. Arlen Specter are co-sponsors of the legislation. Casey said Senate Democratic leaders are aware of the measure and might include it as part of a broader package of legislation in the works to deal with persistent unemployment.
"I think there's broad support for this," Casey said. "The need for this is great. We have to make sure that the urgency is there to get this done. Even in the midst of the debate on health care, this is vitally important."
Federal law requires companies to allow workers who leave their jobs to remain on a company's health insurance plan provided the former employee pays the full premium.
The $787 billion stimulus bill, passed in February, altered that by providing a 65 percent premium subsidy through a tax credit. The stimulus set aside $25 billion to cover the cost. As of summer, only $287 million, or about 1.1 percent, had been spent, an aide to Casey said.
Casey had no estimate of what extending the program would cost, but said there might be enough money left under the original program to pay for the extension.
A federal Department of Labor spokeswoman said the government has yet to compile figures for how many people have taken advantage of the program.
The subsidy's earliest beneficiaries - people who began receiving the subsidy as of March 1 - will stop being eligible Tuesday, said Stephanie Zarecky a spokeswoman for Casey.
Without an extension, workers who lose their jobs after Dec. 31 would no longer be eligible.
Contact the writer: bkrawczeniuk@timesshamrock.com
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