[Congressional Record Volume 141, Number 127 (Wednesday, August 2, 1995)]
[Extensions of Remarks]
[Page E1595]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



[[Page E1595]]


     INTRODUCTION OF THE RETIREE CONTINUATION COVERAGE ACT OF 1995

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                            HON. TIM JOHNSON

                            of south dakota

                    in the house of representatives

                       Wednesday, August 2, 1995
  Mr. JOHNSON of South Dakota. Mr. Speaker, today, I am introducing 
legislation, the Retiree Continuation Coverage Act of 1995, to help 
address the terrible problem that occurs when health care benefits are 
eliminated for retirees and their dependents. A very tragic situation 
occurred in my home State of South Dakota earlier this year when the 
John Morrell and Co. canceled insurance benefits for more than 3,300 
former employees and their dependents, 1,200 of whom live in South 
Dakota. This heartless and irresponsible action has had a direct and 
immediate impact on those retirees who have lost health care benefits 
they thought were guaranteed for life. Many of these retirees have 
preexisting conditions, making private insurance either unaffordable or 
simply unattainable, since many private insurance plans refuse to 
provide coverage. And a number of these individuals do not yet qualify 
for the Medicare Program, as they have yet to turn 65.
  My legislation would extend COBRA coverage to retirees, their 
spouses, and dependents in situations where health care benefits 
sponsored by a retirees' former employer are either eliminated or 
substantially reduced. This extension of COBRA would remain in effect 
until the retiree, spouse, or dependents reach Medicare eligibility.
  In doing this, early retirees--those under the age of 65--would be 
able to purchase health insurance coverage at group rates until they 
become eligible for the Medicare Program. There is a great need for 
this legislation, unfortunately, I am afraid that many more early 
retirees who are counting on their health insurance benefits for the 
rest of their life will instead have their hard work and dedication 
rewarded with a letter from their former employer saying their 
insurance has been canceled effective immediately. This simply cannot 
continue to occur. It isn't fair, and it isn't right.
  I urge my colleagues to support this important legislation and help 
address this serious and growing situation of early retirees losing 
their health insurance benefits. Similar legislation is being 
introduced in the Senate by Senate minority leader Daschle of South 
Dakota.


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