Sánchez, Mrvan, Butterfield introduce legislation to extend COBRA subsidies

September 29, 2021
Press Release

WASHINGTON—Congresswoman Linda T. Sánchez, along with co-leads Rep. Frank Mrvan (D-IN) and Rep. G.K. Butterfield (D-NC), introduced the COBRA Subsidy Extension for Workers and Families Act.  This legislation will help laid off workers maintain affordable health care coverage during the ongoing pandemic. 

The American Rescue Plan provides subsidies to cover the full cost of COBRA premiums for displaced workers through September 30, 2021.  This legislation would extend these subsidies through September 30, 2022.

Currently, nearly 56 percent of American workers are insured through their employer.  Under typical COBRA rules, should an individual lose their job, employers can charge workers who opt for a continuation of coverage up to 102 percent of premiums, making this option prohibitively expensive for many Americans, particularly during the current challenges from the COVID-19 pandemic.

“No one should be worried about losing their health care, especially in the middle of a pandemic,” said Congresswoman Linda T. Sánchez. “I’m proud to join my colleagues in introducing legislation to ensure workers, who saw work hours cut or were laid off through no fault of their own, can maintain health care coverage as we continue to recover from the pandemic.”

Congressman Mrvan stated, “There remain incredible challenges for all workers and our economy due to the threat of COVID-19.  I am grateful for the support of my colleagues, and we must continue to work to provide all workers and their families with affordable health care options during their times of need.” 

Congressman Butterfield stated, “Congressional Democrats worked hard to ensure the American Rescue Plan included protections for workers who lost their employer-sponsored coverage because they were laid off or furloughed.  Giving individuals the option to continue their employer-sponsored coverage, with no monthly premium, will allow individuals to maintain continuity of care without interruption.  I am pleased to join my colleagues today in introducing legislation that will extend these protections for an additional year, giving workers in North Carolina and across the country added security during this difficult time.”

For additional information on the COBRA Subsidy Extension for Workers and Families Act of 2021, click here for the bill text and here for the FAQ.