SPECIAL BULLETIN: White House Summit and COBRA Eligibility Period

WHITE HOUSE HEALTH CARE REFORM SUMMIT

On Monday, Feb. 22, President Barack Obama released an 11-page, $950 billion health care reform proposal, ahead of Thursday's highly anticipated bipartisan health care reform summit. While the president's proposal only included a set of policy priorities, not legislative language, its principles are similar to the Senate-passed health care reform legislation.

Congressional and committee leaders from both parties participated in a day-long Health Care Reform Summit, on Thursday, Feb. 25, along with other members designated by their party's leadership. The summit was both cordial, as well as contentious, with Congressional leaders oftentimes arguing over their fundamental differences and beliefs.

President Obama, who moderated the summit, wrapped up the day-long discussion on health care reform by telling Republicans to find common ground with Democrats in the upcoming weeks, or that Democrats will "go ahead and make some decisions," likely meaning that the Democrats will pass the current health care reform legislation through the budget reconciliation process. Many Republicans stated during the summit that they want to scrap the current health care reform bills and start over, taking a more incremental approach.

It remains to be seen how both political parties will proceed in the coming weeks.


EXTENDED SUBSIDY ELIGIBILITY PERIOD EXPIRES SUNDAY UNLESS CONGRESS ACTS AGAIN

The extended two-month eligibility period for the premium subsidy program is set to end this Sunday, Feb. 28, 2010. This means that workers involuntarily terminated starting March 1 will not be eligible to receive the 65 percent premium reduction of COBRA or state continuation benefits.

Many believe there is Congressional support for extending the premium subsidy eligibility period again, and expect consideration of the issue in coming weeks.

Our hope is that any extension will be passed before the eligibility period ends this Sunday, to avoid another retroactive benefits period. As of this morning, the House has passed a voice vote to extend the subsidy by one month. It now goes to the Senate, but isn't expected to pass before week's end.