[Congressional Record Volume 155, Number 110 (Tuesday, July 21, 2009)]
[Senate]
[Page S7792]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BURRIS:
  S. 1488. A bill to extend temporarily the 18-month period of 
continuation coverage under group health plans required under COBRA 
continuation coverage provisions so as to provide for a total period of 
continuation coverage of up to 24 months; to the Committee on Health, 
Education, Labor, and Pensions.

  Mr. BURRIS. Mr. President, today I rise to address a growing problem 
resulting from America's high levels of unemployment and economic 
downturn. Congress is working to design health reform that will provide 
access to quality, affordable insurance coverage for every American, 
but as unemployment numbers continue to rise, help may not come in time 
to avoid coverage denials on the individual insurance market and 
unbearable economic strain for those job seekers whose COBRA coverage 
has expired.
  The Comprehensive Omnibus Budget Reconciliation Act of 1985 codified 
18 months of additional group rate coverage under employer sponsored 
plans following a triggering event such as job loss. This law has been 
instrumental in providing continuity of health coverage for families. 
The measure requires companies with over 20 employees to provide access 
to 18 months of continued coverage at the employee's expense, except in 
cases of firing for gross employee misconduct. Beneficiaries cover the 
additional administrative expense, and may be charged up to 103 percent 
of their original premiums.
  The American Reinvestment and Recovery Act provided help with health 
insurance for families who lost their jobs after September 1, 2008 and 
through December of 2009. For those in this category, the federal 
government provides nine months of subsidized premiums, with 
beneficiaries covering 35 percent of premium costs. However, the 
downturn started well before September of 2008.
  For those that lost their job before September, and are still looking 
for work, the situation is dire. Many are quickly facing the end of 
their 18 month eligibility period for COBRA. They hear about health 
reform but have no idea when it may come. Insurance exchanges to 
guaranteeing eligibility and reasonable premiums on the individual 
market could take years to set up. In the mean time, those who could 
have afforded coverage under COBRA may instead have to resort to 
emergency room care and bankruptcy.
  The Emergency COBRA Expansion Act of 2009 will give job seekers the 
opportunity to continue their COBRA coverage for up to an additional 6 
months. The bill applies to all of those utilizing COBRA benefits as of 
the date of bill passage, and would not extend anyone's coverage beyond 
12 months from the date of bill enactment. A year from now, our country 
will be on the road to economic recovery, but in the meantime we need 
to help struggling families to stay insured and healthy.
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