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For Immediate
Release
6/3/09
 
"Mini-COBRA" Bill Headed to Governor
Senate also approves measure stopping
payments for "avoidable errors"
Legislation creating a "Mini-COBRA" health
insurance plan in Pennsylvania is headed to the Governor for enactment following
Senate approval today, according to Senator Don White (R-41) prime sponsor of
the Senate version of the measure.
House Bill 1089 amends the Insurance Company Law of 1921 to create a
Mini-COBRA Small Employer Group Health Plan. HB 1089 is identical to Senate Bill
442, a measure introduced by Senator White and approved by the Senate on April
1.
"The important thing is not whether this is a
Senate or House Bill, but rather that we move this on to the Governor's desk as
soon as possible," Senator White said. "The Mini COBRA program will not solve
all of the problems with Pennsylvania's health care system. However, it is an
important step in the right direction to maintain affordable accessibility to
essential health care. Most significantly, it does not cost the Pennsylvania
taxpayers one dime. This measure is already in place in many other states and it
is time we make it part of Pennsylvania's health care network."
The federal Consolidated Omnibus Budget Reconciliation Act (COBRA)
provides former employees, retirees, spouses, former spouses, and dependent
children the right to continuation of health coverage at group rates for up to
18 months. However, COBRA benefits only apply to employers with 20 or more
employees. HB 1089 extends the COBRA guidelines in Pennsylvania to group plans
that employ 2 - 19 employees.
"House Bill 1089 could provide an important
safety net to thousands of individuals who work for small businesses and find
themselves to be between jobs," said Senator White. "This benefit is already in
place for larger companies. It is time we make it part of the health insurance
network for small businesses as well. In addition, this program will enable more
Pennsylvanians to take advantage of the relief offered in the federal stimulus
package."
The American Recovery and Reinvestment Act of
2009, also known as the federal stimulus act, provides a 65 percent federal
subsidy for COBRA premiums. The subsidy is good for up to nine months for those
covered by COBRA as well as those in a state continuation program such as the
Mini-COBRA program established by HB 1089.
The Senate today also approved House Bill 84, a measure that would permit
health insurers to withhold payment to providers in the event of an avoidable
medical error. HB 84 is the companion bill to Senate Bill 443, a measure
introduced by Senator White and approved by the Senate in March.
"Medicare has already stopped reimbursing providers for the cost of
medical-related infections and mistakes and it is time that we give health
insurance companies the same opportunity," Senator White said. "House Bill 84
reduces health care insurance costs while pushing providers to eliminate
mistakes."
HB 84 was amended by the Senate Appropriations Committee and will be
returned to the House for concurrence.
House Bills 84 and 1089, and Senate Bill 189, a bill introduced by Senator
Jake Corman (R-34) to extend health insurance coverage, at the expense of
policyholders, to adult dependent children up to the age of 30, all include
provisions of the HealthNET PA legislative package introduced by Senate
Republicans. SB 189 is currently on the Governor's desk awaiting his signature.
All of the bills (House Bills 84 and 1089 as well as Senate Bills 189, 442
and 443) were previously considered and approved by the Senate Banking and
Insurance Committee chaired by Senator White.
Contact:
Joe Pittman
(717) 787-8724
Additional Information:
Health Care
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