Is this the beginning of frugality by the government on healthcare benefits (as an extension of jobless benefits) as the nation slowly churns itself through an intensely phlegmatic recovery? Lawmakers may be on the brink of nixing the COBRA subsidy for the newly unemployed — meaning that for those who lost jobs from the outset of this month, COBRA^[1] benefits will be no more. The House has taken this bit of legislation away, and now, it heads to the Senate for a vote.

If this happens, the newly unemployed will have to find alternatives — meaning anything from sliding scale/public health options to researching the open market for premiums that may encompass the vast majority of their unemployment benefits.

Providers and states will be affected, as Medicaid reimbursements and offerings could take a hit.

As the president continues to grapple with the worst oil fiasco in the nation’s history, a tepidly stingy economy, and the spectre of losing his party control in both houses of Congress this fall; he surely must be noting this apparent irony in the mere months since passage of healthcare reform. If the Senate votes to end the COBRA subsidy, beneficiaries in this situation may face setbacks in getting access to care, as reform’s legislative safety nets won’t kick in for another 4 years. | LINK

1. COBRA — Former employees pay the entire cost for their health insurance. In exchange, they retain the availability of the benefits and the network of doctors and hospitals they’ve always had. [↩]

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