NEWS RELEASE

Washington, D.C. -- U.S. Sen. Al Franken (D-Minn.) joined his colleagues Senators Sherrod Brown (D-Ohio) and Bob Casey (D-Pa.) to support the COBRA Subsidy Extension and Enhancement Act (S.2730).

COBRA allows jobless workers to keep their health care as they look for new employment.

The Congressional Budget Office estimates that seven million workers and their dependents will use the COBRA subsidies in 2009. Tens of thousands of Minnesota families won’t be able to stay insured without this extension. This act addresses the short-term crisis facing so many families by extending the COBRA subsidy another six months through June 30, 2010.

“While we debate health care reform in Washington, we must not forget the dire situation millions of unemployed Americans face right now,” said Sen. Franken. “With only one job open for every six workers in this US, now is not the time to place another burden on struggling Minnesota families. This legislation will make sure that thousands of Minnesotans don’t lose their health care coverage because they’ve lost their jobs.”    

Unless Congress acts now, the cost of health care for families will rise dramatically. A family that currently pays a $315 monthly premium will see its rates rise to $900 a month, effectively tripling the price of health care for that family.

This legislation also improves on the current COBRA subsidy by increasing the subsidy from 65 percent to 75percent. That means that the same unemployed family now paying a $315 monthly premium will see their payment reduced to $225.