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FOR IMMEDIATE RELEASE |
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State
Rep. Robert F. Matzie |
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House passes Matzie bill to expand COBRA health coverage
HARRISBURG, April 22 – The House today passed legislation (H.B. 1089) introduced by state Rep. Robert F. Matzie, D-Allegheny/Beaver, that would make COBRA health-insurance coverage available to Pennsylvania businesses with fewer than 20 employees.
Matzie's bill is part of the House Democratic Caucus' Health PAct, a package of bills unveiled by House Majority Leader Todd Eachus, D-Luzerne, that focuses on providing and enhancing access to basic health care for the state's most vulnerable citizens.
Matzie said, "My legislation would make group-rated health insurance available to small employers and former employees of small businesses. I know small businesses are essential to Pennsylvania's economy and many are being hit hard by the current economic crisis. I am pleased that the House has recognized the importance of my bill and passed it."
In 1986, Congress passed the Consolidated Omnibus Budget Reconciliation Act, giving workers and their families who have health coverage through their employer the right to continue coverage for a period of time after they leave employment. The former employee is generally required to pay the former employer's portion of the premium.
However, that continuation of coverage through COBRA currently doesn't apply to small businesses with fewer than 20 employees.
Matzie's bill would also extend a 65 percent reduction in COBRA premiums authorized under the new federal stimulus law to workers laid off from small businesses for up to nine months.
Matzie's legislation now goes to the Senate for consideration.
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