Rep. Pappas Calls on Congress to Subsidize COBRA to Help Preserve Access to Affordable Coverage for Granite Staters

WASHINGTON, April 15 -- Rep. Chris Pappas, D-New Hampshire, issued the following news release:

Congressman Chris Pappas (NH-01) called on the House leadership to ensure that the next coronavirus relief package includes measures to help New Hampshire families affordably maintain access to their existing health coverage in the face of skyrocketing job losses. Because most Granite Staters obtain coverage through an employer, the current economic downturn could result in untold numbers of families losing access to critical health services at the worst possible time.

Pappas is urging House Speaker Nancy Pelosi and Republican Leader Kevin McCarthy to federally subsidize COBRA (The Consolidated Omnibus Budget Reconciliation Act), which allows employees to remain on their current health care plans after being laid off. Pappas has also repeatedly requested the creation of a special enrollment period for the ACA exchange in the face of this public health emergency.

"On top of the financial pain caused by the loss of a job or a small business, thousands of Granite State families are also worried about losing their health insurance coverage in the midst of a public health crisis," said Congressman Pappas. "That's why I'm calling on the House leadership to make preserving access to affordable health coverage a top priority as we develop the next coronavirus relief package. Congress should subsidize COBRA so that workers can keep their doctors and their health coverage even when an employer scales back or closes. We should also mandate a special enrollment period to enable more Granite Staters to find an affordable plan that works for their family. No one should lose their health care because of this pandemic, and no one should go without coverage during this crisis."

Pappas's letter to the House leadership requests the inclusion of the following policies in the next coronavirus legislative package:

Providing generous federal subsidies for COBRA coverage, including subsidizing employer administrative costs associated with the program;

* Ensuring that individuals who obtain coverage through the ACA exchange aren't forced to repay money at the end of the year due to income fluctuations; and,

* Mandating a special enrollment period so that Granite Staters can obtain coverage through the ACA exchange.

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Dear Speaker Pelosi and Leader McCarthy:

As the coronavirus pandemic continues and unemployment skyrockets, it's clear that families in my state and across the country will need additional support from the federal government. Unfortunately, the economic downturn isn't just hurting American workers financially - it's also threatening their access to health services at the worst possible time. For this reason, I strongly urge you to make protecting and strengthening access to coverage a top priority in the next relief package that Congress considers.

In New Hampshire, over 100,000 unemployment claims have been already filed since the start of the crisis while across the country, over 10 million claims were submitted last month alone. Given the fact that most Americans are covered by employer sponsored insurance, Congress must act now to preserve affordable access to care in the face of mounting job losses.

Specifically, any upcoming legislation should ensure that COBRA is affordable and that the individual market is strengthened. These insurance programs, along with Medicaid, will be critical in providing coverage for millions of Americans confronting job loss and economic dislocation in the difficult weeks and months ahead.

COBRA is an important tool to maintain continuity of care with minimal disruption, especially for those who expect to regain employer sponsored coverage in a few months or are experiencing chronic conditions. Unfortunately, however, it is often an unaffordable option for those who are facing a sudden loss of income and starting a new plan can subject consumers to new deductibles.

To address this challenge, subsidies similar to those provided in the individual marketplace should be extended to cover consumer costs of COBRA or equivalent coverage based on current income levels. In addition, employer costs to administer coverage should also be subsidized and Congress should consider temporarily extending the length of COBRA eligibility for those who are currently utilizing it and will struggle to find employment at this time.

We must also act now to ensure that the individual market remains a viable option for families in my state and across the country. Reconciliation for subsidies that were determined based on the income level at enrollment should be waived for 2020 given income fluctuations due to the pandemic. This will ensure that consumers aren't forced to repay subsidies at the end of the year. Subsidies should also be bolstered to make coverage more affordable.

Finally, I was disappointed to see that the Secretary of Health and Human Services will not be using administrative authority to open a Special Enrollment Period and encourage Congress to use its authority to open one. The Affordable Care Act is a critical tool in ensuring coverage for Granite Staters, and Congress should do everything in its power to utilize and strengthen the ACA at this trying time for our country.

We are facing an unprecedented public health crisis, and Congress must take bold action to ensure that American families can continue to access care despite mounting job losses. Again, I look forward to working with you to pass a coronavirus relief package that includes measures to help maintain affordable health care coverage for the people of my state.