Many of you have asked how the federal government can help Colorado with health care in the proposed two-year $825 billion stimulus package. Here are some recent developments:

Yesterday, several Congressional committees tackled this subject by including additional funds for Medicaid, $20 billion for health care information technology, and federal subsidies for health insurance premiums under COBRA, among other provisions. Earlier provisions would prevent reductions in Medicaid reimbursements to hospices, long-term care facilities and medical students.

Under the stimulus package, the federal government would subsidize 65% of COBRA premiums for as long as 12 months. Recently unemployed workers 55 and older -- or those with at least 10 years of tenure at their jobs -- could continue to receive health insurance through COBRA. They could receive COBRA benefits until they find a new job that offers coverage or until they turn 65, when they can enroll in Medicare.

Two amendments that passed make sense to me. One, by Rep. Cliff Stearns (R-Fla.), would disqualify individuals with annual incomes of more than $1 million from receiving COBRA subsidies. Another, by Rep. Tim Murphy (R-Pa.), would require recipients of funds for health care IT to purchase technology manufactured in the U.S.
Opponents to both the Medicaid funding and the COBRA benefits are speaking out. Republican Chuck Grassley (Iowa) said that although he could "buy into 90%" of the stimulus package, he opposes the almost $90 billion in additional Medicaid funds included in the legislation because some governors would use the funds to address problems in other areas of their budgets.

Another voice of opposition is from the National Business Group on Health. Although the NBGH does support temporary subsidies for COBRA premiums, it opposes the provision that would extend COBRA indefinitely because of the burden on employers. The cost of COBRA "can be as high as 133% to 150% of the average per-employee plan costs," wrote NBGH President Helen Darling. "These costs would significantly increase if people could keep COBRA longer as they approach Medicare eligibility, and their health care costs generally increase due to higher medical costs and higher rates of chronic conditions."

Let Congress know your thoughts!

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