CAHC Letter: Supporting COBRA

Senator Mitch McConnell Majority Leader
US Senate

Representative Nancy Pelosi Speaker
US House of Representatives

Senator Chuck Schumer Minority Leader
US Senate

Representative Kevin McCarthy Minority Leader
US House of Representatives

Dear Leaders:

The undersigned organizations write to urge you to include a COBRA subsidy in any end-of -year package so that millions of Americans who lost their job and their health insurance might continue to access health care.

Real-time survey data from health insurers and households suggest that, by late July, the number of people with employer sponsored insurance fell by as many as 14 million, according to the Employee Benefit Research Institute. During this difficult time, many employers worked to maintain their furloughed employees on the existing health plan and to subsidize COBRA for their laid-off workers. Even so, millions of Americans face the prospect of losing their health coverage.

Americans electing COBRA coverage are not only able to continue coverage with which they are familiar, but also avoid the high deductibles and cost sharing that often come with alternative sources of coverage. COBRA coverage maintains workers’ access to their existing in-network medical providers and the prescription drugs they were using before they lost their employment-based health insurance coverage. There is no question that for those with serious and chronic medical conditions, keeping their existing coverage – including access to the same doctors and prescriptions – will help maintain better health. In the best of times, these financial and access provisions are important. In the midst of growing pandemic, COBRA protections are vital.

Providing access to COBRA subsidies is a targeted solution to help those who most need it, while making it easier for employers to re-hire laid-off employees. We urge you to act to protect existing coverage by providing a COBRA subsidy in any end of the year legislative package.