Senate Approves Senator White's "Mini-COBRA" Bill

Measure stopping payments for "avoidable errors" also headed to House

The Senate today (April 1) approved Senate Bill 442, a measure introduced by Senator Don White (R-41) intended to improve health care access, affordability and coverage.

SB 442 amends the Insurance Company Law of 1921 to create a Mini-COBRA Small Employer Group Health Plan. The bill now goes to the state House of Representatives for consideration.

"Senate Bill 442 is not a silver bullet. It will not solve all of the problems with Pennsylvania’s health care system," said Senator White, who serves as Chairman of the Senate Banking and Insurance Committee. "However, it is a pragmatic step in the right direction to improve the accessibility and affordability of health care and 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. SB 442 would extend the COBRA guidelines in Pennsylvania to group plans that employ 2 - 19 employees.

"Senate Bill 442 could provide an important safety net to thousands of individuals who worked for small businesses but are between jobs," said Senator White. "This is especially critical as we have seen Pennsylvania’s unemployment skyrocket over the past few months to a current rate of 7.5 percent. 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 SB 442.

Last week, the Senate approved Senate Bill 443, a measure introduced by Senator White that would permit health insurers to withhold payment to providers in the event of an avoidable medical error. "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. "This bill reduces health care insurance costs while pushing providers to eliminate mistakes."

NOTE: Audio and video of Senator White’s remarks on the floor of the Senate regarding Senate Bill 442 are available at his website: www.senatordonwhite.com and at the Senate Republican Caucus website: www.pasenategop.com.

Contact:

Joe Pittman
(724) 357-0151