October 26, 2001

House-Passed Economic Stimulus Bill Includes State-Based Coverage for Uninsured

The House of Representatives Oct. 24 narrowly passed a multi-billion-dollar economic stimulus bill that provides tax relief for businesses and individuals. The bill also expands unemployment benefits for American workers, including a one-year increase in Social Services Block Grants. The bill's cost is estimated at nearly $100 billion in 2002 and will provide a total of approximately $160 billion in tax relief over the next 10 years.

The "Economic Security and Recovery Act of 2001" (H.R. 3090) increases 2002 Social Services Block Grants by $3 billion. The grants allow states to help unemployed individuals purchase health care coverage for themselves and their families. The Recovery Act also includes a two-year extension of parity in the application of certain limits to mental health benefits (scheduled to expire this year).

The House rejected a substitute in the nature of an amendment offered by Rep. Charles Rangel (D-N.Y.) that included provisions to provide federal subsidies to cover 75 percent of a person's COBRA premium for one year. Low-income COBRA recipients would qualify for an additional 25 percent in federal support. Rep. Rangel's amendment also included temporary Medicaid coverage for unemployed individuals without access to COBRA plans.

Information: Chris Mitchell, AAMC Office of Governmental Relations, 202-828-0526.