Shaheen, Senators Introduce Bill to Protect Unemployed Workers’ Health Insurance During COVID-19 Pandemic

September 28, 2020

(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) introduced legislation with a group of lawmakers led by U.S. Senators Dick Durbin (D-IL) and Catherine Cortez Masto (D-NV) that would protect millions of unemployed or furloughed workers from losing their health insurance by enabling them to access subsidized COBRA coverage and keep their insurance. The Worker Health Coverage Protection Act would provide a 100 percent subsidy of COBRA health insurance premiums owed by unemployed workers, in nearly all employment-based health plans, to ensure that they do not lose coverage due to the COVID-19 pandemic.

“Access to affordable health care has never been as critical as it is today. As our nation grapples with the economic fallout from the pandemic, it’s imperative that Congress takes action to ensure cost is not a barrier to care during this global health crisis,” said Shaheen. “This legislation will help unemployed and furloughed Americans maintain coverage during these challenging times. Our nation is experiencing a public health and financial emergency – keeping Americans covered must be a top congressional priority, and our legislation will help us do just that.”

Since the middle of March, approximately 57 million Americans have filed for unemployment benefits, with an estimated 10 to 15 million having also lost their employer-sponsored health insurance. Many unemployed Americans would prefer to remain on their employer health plan, known as COBRA, but it is often prohibitively expensive—on average, $1,700 per month for a family.

Joining Shaheen, Durbin and Cortez Masto in introducing the bill are U.S. Senators Sherrod Brown (D-OH), Dianne Feinstein (D-CA), Michael Bennet (D-CO), Jack Reed (D-RI), Amy Klobuchar (D-MN), Tina Smith (D-MN), Jeff Merkley (D-OR), Richard Blumenthal (D-CT), Tammy Duckworth (D-IL), Debbie Stabenow (D-MI), Jacky Rosen (D-NV) and Bob Menendez (D-NJ).

The following organizations have endorsed the Worker Health Coverage Protection Act: AFL-CIO, National Coordinating Committee for Multiemployer Plans, Families USA, American Hospital Association, and Alliance to Fight for Health Care, Actors’ Equity Association, Air Line Pilots Association, International (ALPA), Alliance for Retired Americans (ARA), American Federation of State, County and Municipal Employees (AFSCME), American Federation of Teachers (AFT), Communications Workers of America (CWA), Guild of Italian American Actors (GIAA), International Alliance of Theatrical Stage Employees (IATSE), International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART). International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers (IBB), International Brotherhood of Teamsters (IBT), International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union (USW).

The Worker Health Coverage Protection Act would allow workers who have been involuntarily terminated in nearly all employment-based health plans, including private sector plans covered by the Employee Retirement Income Security Act (ERISA), multiemployer plans, state and local government plans, and the Federal Health Benefits Program, to access subsidized COBRA coverage.  Specifically, it would provide a 100 percent subsidy of COBRA health insurance premiums owed by unemployed workers to ensure that they do not lose coverage due to the COVID-19 pandemic. Furloughed workers whose health benefits continue while pay is suspended would also have their employee contributions 100 percent subsidized. These subsidies would not impact workers’ eligibility for unemployment benefits or other types of state or federal assistance.

This bill would also extend the period during which workers could elect COBRA coverage, and enable workers to access coverage even if they declined it before the subsidy was made available, thereby ensuring continuity of care amid the health and economic challenges of the COVID-19 pandemic. Employers and federal agencies would be required to conduct new notice and outreach activities to ensure workers are aware of the availability of the credit.