[Congressional Record Volume 151, Number 140 (Friday, October 28, 2005)]
[Extensions of Remarks]
[Page E2215]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E2215]]
           INTRODUCTION OF THE HEALTH CARE COSTS ACT OF 2005

                                 ______
                                 

                          HON. ROBERT MENENDEZ

                             of new jersey

                    in the house of representatives

                        Friday, October 28, 2005

  Mr. MENENDEZ. Mr. Speaker, today I'm pleased to introduce the Health 
Care COBRA OffSet Tax Savings (COSTS) Act of 2005. This important 
legislation is a step forward in helping working families afford 
quality health care in this country.
  Rewarding work is one of the most fundamental core values of our 
Nation. Our founding fathers built a society on the notion that if you 
work hard, you will have an opportunity to provide a better future for 
your children and thus build a stronger, more competitive Nation. And, 
as we've seen throughout our Nation's history, America's workers have 
not disappointed.
  Unfortunately, however, too many Americans today are working hard 
every day, but are still unable to make ends meet and provide even the 
most basic needs for their family, such as food, shelter, or health 
care. The legislation I'm introducing will help address one of these 
important challenges: affordable, quality health care for working 
families.
  The statistics are undeniable--almost 46 million Americans have no 
health insurance and more than 1 million of the uninsured are in my 
home State of New Jersey. But that's just the beginning of the problem. 
Even families who are fortunate enough to have health insurance, are 
struggling to pay the premiums, which in New Jersey, have increased at 
four times the rate of earnings. Since 2000, the employee share of 
health care premiums in New Jersey increased almost 43 percent, or 
almost $400 a year. When family earnings increase by only 10 percent 
over the same period, it becomes harder and harder to afford health 
care for your family.
  The Health Care COSTS Act does not address the entire problem, but it 
will help some workers afford to keep their health insurance when 
they're between jobs. Currently, many workers who receive health 
coverage through their employer are entitled to keep that coverage for 
up to 18 months after they leave their jobs. This coverage is known as 
COBRA coverage. However, many don't take advantage of COBRA coverage 
because it's simply too expensive. The employee, who has just lost 
their job, has to pay the full cost of the coverage, making it 
prohibitively expensive for most families.
  The Health Care COSTS Act helps moderate-income families with the 
cost of COBRA by providing an ``advanceable'' tax credit for half the 
cost of these health care premiums. The tax credit would go directly to 
the health plan administrator, thus reducing the workers' monthly 
premiums by 50%. This is not a handout, but a helping hand for workers 
who have contributed to the economic well-being of their community and 
have earned the opportunity to care for their family while they get 
back on their feet and find another job.
  Clearly, there is much more to do in addressing the health care 
crisis in this country, but this is an important first step in helping 
working families afford health care coverage during one of the most 
difficult and vulnerable times a family might face. I hope this 
legislation will be a starting point for discussion of the significant 
challenges families face in affording quality health care in this 
country.

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