Pelosi: House Will Pass COBRA Subsidies, State Aid

Speaker Nancy Pelosi (D-Calif.) said on Tuesday that the House would return to the debate over COBRA subsidies and aid to state governments when Congress returns, and may package both of them together. The spending was cut from a jobs bill the House passed Friday in order to mollify Democrats concerned about the deficit. The House returns next week.

"There's a changed climate in terms of the size of the spending/investment packages that we're putting forth," said Pelosi in a conference call with progressive media, explaining why she scuttled COBRA and state aid. "If I had all the votes I needed in a non-Blue Dog world, I would not have had to make some of the changes I made to get some Blue Dog support."

Some Democrats, said Pelosi, were reluctant to subsidize COBRA when there were still workers without health care.

Pelosi said that the size of the bill, initially proposed at roughly $200 billion, was too much for some Democrats. "It was a package that was too large for members to digest," Pelosi said, vowing to pass the rest of it piece by piece.

Her members pushed back against continuing COBRA subsidies, which help laid-off workers afford health insurance. An employee laid off after May 31st will pay the full cost of COBRA, which is prohibitive for many people, especially those who have just lost their income.

"COBRA was the most controversial," she said. "The arguments that were used by some, and let me say, they were not confined to Blue Dogs, is that there are people who are working that don't have health insurance and there are people who are not working who have health insurance subsidized by the taxpayer and it's a hard sell for some people back home."

The House bill was passed without aid to states, known as FMAP. House leaders insist that governors need to lobby Congress to make it clear they want the money. Instead, many state officials slam Congress for "out-of-control spending" while plugging their own state budgets with federal money. "We need to hear from both Democratic and Republican governors that they need this," said Dutch Ruppersburger (D-Md.), a senior member of the Appropriations Committee.

Pelosi said that FMAP and COBRA could be tied together. "We will pick up FMAP and hopefully we will be able to include COBRA in that," she said.

Comments

[jerryfromcalifornia]

12:05 AM on 06/03/2010

THE BLUE DOGS NEED TO GO OR BE CONTROLED.

[DeaconJoey]

05:20 PM on 06/02/2010

Cut the State aid. Starve the red states!

[SPQR1775]

03:32 PM on 06/02/2010

wy should we continue to pay healthcare called COBRA for people in Nebraska, LA, MS, SC, GA, ND, SC, AK all red states how are using the Federal Goverment as their purse. I thought they didn't want any Goverment funding? Silly Bigots COBRA is socialism! LMAO

[Lorianne]

04:14 PM on 06/02/2010

COBRA is not socialism, you still pay the premiums and have a deductible co-pays etc.
All COBRA does is make sure you can stay in your high priced plan and pay the full fare for it ... for a while.

Subsidizing COBRA is socialism - corporate socialism - for Big Insurance and Big Pharma and Big Med

[Democrat in the South]

09:36 AM on 06/03/2010

Cobra IS socialism. If you have COBRA you are not paying the full cost of medical care. COBRA is paying part of it. If you rely on any system to help you pay for services, that is 'socialism". Others are sharing the cost for you. The only way that it is not socialism is if you pay all the costs and do not participate in an insurance system, AT ALL, Period!

[Noisyguy]

03:26 PM on 06/02/2010

I have health insurance, but I can't afford to use it. My copay & deductible are too high. Thanks for nothing!

[Lorianne]

04:16 PM on 06/02/2010

Same thing for people on COBRA, only worse as those folks don't have income to pay for the premiums, much less use the insurance they're buying

Of course, subsidizing all this insanity will fix it.

[graymatters]

03:06 PM on 06/02/2010

http://www.cnsnews.com/news/article/66930

[jerryfromcalifornia]

12:10 AM on 06/03/2010

Why do you post this cr*p? Why are you here? You are some Limbaugh, Hannity Beck parrot with not an rational idea in your head. You speak in bumper stickers and Fox talking points.

[Andrew Reinbach]

02:27 PM on 06/02/2010

This is strictly another giveaway to the insurance industry. COBRA costs $400 a month--more than people collecting unemplyment can afford. In Florida, for instance, top weekly benefits are $230; tell me how anybody can pay $400 a month out of that. On the other hand, help paying COBRA means insurance companies lose that many fewer policies. Congress' message to the unemployed is clear: Drop dead.

[Lorianne]

04:18 PM on 06/02/2010

Exactly. Some are catching on and doing some critical thinking.

More and more people are opting out, not being able to pay the full fare for their already over-priced plans. The insurance companies are PANICKING ... which is why Congress helping them pull more people back into the scam.

[jerryfromcalifornia]

12:14 AM on 06/03/2010

You don't have to take the cobra, But when I had to pay a cobra a few years ago it was about a $1000. I would have welcomed the $400 fee. I agree that Insurance companies are not our friends but some people have medical problems that must be addressed. It could be a life or death situation.

[AncientPollyanna]

01:45 PM on 06/02/2010

I put this in the wrong spot below:

All overseas jobs should be penalized. Any American corporation who (yes, WHO, thank you, SCOTUS) puts an American worker out of a job that is shipped overseas needs to pay a large fee for that lost job, to be placed into our entitlement coffers. Also, the wages overseas workers receive should be taxed into our FICA system, social security, et al.

[graymatters]

03:09 PM on 06/02/2010

You can't just blame business. The government has priced those jobs out of the market, by mandating things like minimum wage, increasing taxes for their employees etc...

[Lorianne]

04:21 PM on 06/02/2010

Yeah, that'll work.
They'll just close shop altogether and do business someplace else.

[AncientPollyanna]

11:09 PM on 06/02/2010

Where on earth have YOU been?

[Yikes11]

01:10 PM on 06/02/2010

W t uk about adding another tier? Just let that one slide on by.

[Lorianne]

01:10 PM on 06/02/2010

People are opting out of health insurance due to the high (exorbitant) cost.

Big Insurance is panicking ... so they're getting Congress to help them suck people back into the scam.

Boycott Insurance. Bring them to their knees.
How dare they rape taxpayers to fill their coffers!”

[bygollymissmolly]

01:05 PM on 06/02/2010

So, the Blue Dog argument was that there are people who are working who don't have insurance. Well, they do have an income, though. I don't have a reliable source of income and I don't have health insurance. Gawd I wish we could get rid of all the blue dogs in this next election. It would be nice to have a full contingent of real Democrats in Congress.

[getsit]

03:14 PM on 06/02/2010

This makes it look like they are doing something for the unemployed. It's a misdirection and an "accomplishment" to show their constiuents. If they really cared they would have made sure we had a simple single payer plan to cover eveyone. Then businesses and workers contributing tax into the system would know exactly how much their liability would be. We would all be on the same footing and to h e l l with corporate insurance companies.

[hypnotoad72]

12:18 PM on 06/02/2010

If $200 million is too much to spend for insurance, why not reform insurance costs?

Why not go to the ROOT of the problem and control actual costs that render "$200 million" impracticable to be spent?

And as we all know, $15 for one Tylenol is nothing short of sheer highway robbery. Fleecing? How isn't it?

[Lorianne]

12:29 PM on 06/02/2010

People are starting to opt out of insurnace due to the high cost.
Big Insurance is panicking ... so they're getting Congress to help them suck people back into the scam.

Boycott Insurance. Bring them to their knees.
How dare they rape taxpayers to fill their coffers!

[getsit]

12:41 PM on 06/02/2010

You're right. COBRA is unaffordable for most people and the insurance companies know this. The stand to profit if the government kicks in and pays. If you are on unemployment because of a layoff, you cannot afford the full cost of your insurance. Insurance wins, the share you have to pay is still large so you spend less in other ways (so no economy stimulation). The CEOs get more than their share, whether they are incompetent or not.

We need single payer insurance for all. It is the right and moral thing to do. Unfortunately, we do not have right and moral people in our government because they have been bought out by the corporations. Corruption is their morality.

[getsit]

12:15 PM on 06/02/2010

I'll say, right now, California needs the money. Do you hear me Congress/Obama?!!!!!!!!

The more people laid off or hours cut, the less money in the economy. People can't spend what they don't have. They tighten their budget. Less tax revenue for federal, state, and local communities. More layoffs. This is not a cycle, it's a downward spiral. We need jobs and to keep the jobs we have.

People need money in their pockets to stimulate the economy. It is a BOTTOM UPWARD PROCESS. not top down, trickle down, supply side economics. Supply side economics is what the top 5% believe in because they have all the money and want to keep it. Share not, is their motto, selfish are they. Can't have enough and always need more.

And the middleclass becomes poor and disappears. We become a 3rd world country.

[drumsgirl]

12:19 PM on 06/02/2010

Why shouldn't people want to keep the money they earn? It's not selfish - it's self-preservation. It's those in the entitlement crowd with their hands out to take from others that can't have enough and always 'need' more.

[getsit]

12:35 PM on 06/02/2010

Sorry but you're wrong. As someone who works with the"entitlement" crowd I know you're wrong.

Most do not want to be jobless, or working 3 jobs at minimum wage with no benefits, or without insurance, or chronically ill or have family members who are disabled, or mothers whose hubbies have left them with nothing but children to raise, or middleclass who have children who are brilliant but cannot go to college. Most of us are a paycheck away from needing entitlement services because the top 5% don't pay the taxes they should. They were given the "privilege" of making money with corporate welfare (subsidies) and huge tax breaks. They were given the "privilege" of making money BECAUSE THE WORKERS DO THE WORK. We deserve our fair share and some of that is help when we're down.

And as for earning their pay-the middleclass and poor earn their money fair and square. They don't make money from money. They go to job/jobs everyday and work hard, some for very little money. They support their families the best they can-as the cost of living goes up, and up and up and their paychecks stay the same or go down.

Have some compassion and some smarts.

[wdw505]

01:35 PM on 06/02/2010

well said and fanned

[Lorianne]

12:25 PM on 06/02/2010

Why is California special?
Everyone is hurting, losing jobs


If Californian's try to get the rest of the country to bail them out there will be open revolt.
Enough is enough.

It is bad, I'll grant you. But it is going to get a lot worse if people do not stop this "bail me out" mentality

[getsit]

12:47 PM on 06/02/2010

The California Republicans (state legislature) are doing a number on the people of California. We need to raise taxes temporarily (not just cut from the poor) and because of the 2/3 majority rule the minority is ruling. Kind of like the U.S. Senate. Nonfunctional and going nowhere, and useless.

But you are right, we are not special. All states need the stimulus, but I believe that if your Congressmembers vote against it you shouldn't get it. People need to vote for Congressmembers who care about the voters and not lining their own pockets, then taking credit for the work and votes of other Congressmembers.

[Lorianne]

12:00 PM on 06/02/2010

People cannot pay the exhorbitant medical insurance costs and run-away medical and drug costs ... but the insurance companies and medical and pharma companies won't lower prices ... they want their money no matter who pays ... and if the taxpayers have to pay, they don't care ... they just want their full fare exhorbitant prices and huge profits (and no competition either).

They'll pay off any politician what they want. We've seen that already

Look at the big picture. This helps no individual in the long run (except pharma/med/insurance CEOs).

We must stop looking at things the short-sighted way.

[stunsitfel]

11:35 AM on 06/02/2010

Turn the printing presses back on. Nancy is back in town.

[hypnotoad72]

12:20 PM on 06/02/2010

Where were you when GWB, GHWB, and Reagan were in charge?

(Clinton fixed the deficit, though as republicans kept pointing out he didn't do much about gas prices or the trade deficit. But that's okay, the moment a Democrat isn't around, the republicans don't mind when their leaders increase those deficits and let other interests keep prices artificially high)

[MakeAWish]

11:16 AM on 06/02/2010

Obama, and Pelosi's non health care bill isn't worth the trees that were cut down to make the paper that this two thousand plus pages of junk was written on..