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Millions of laid-off Americans lost federal subsidies today that helped them buy health insurance.
The development is likely to trigger a growing crush of people lining up at free and federally subsidized clinics and hospitals that serve them, health leaders in Michigan said.
Congress is considering new legislation to resume the subsidies but costs and other issues make passage unlikely anytime soon, health leaders say.
The subsidies that ran out today were provided to workers starting in March, for nine months, and paid 65% of a person's health insurance.
COBRA subsidies will continue for those who started getting the help after March, for a total of nine months. That includes anyone who signs up for the coverage by Dec. 31. After that time, unless Congress approves an extension of the program, a person or family would have to pay the full cost of their coverage.
In Michigan, a family received an average $665 a month average subsidy toward a policy that otherwise would cost $1,023, according to a report released Tuesday by FamiliesUSA, a health research and advocacy organization that supports health insurance reforms in Congress.
"For millions of laid-off workers and their families, the federal COBRA subsidies have been a health-coverage lifeline," said Ron Pollack, executive director of FamiliesUSA. He called extension of the subsidies essential, but expects a fight over the bills.
Sister Mary Ellen Howard, director of Cabrini Clinic, a free clinic in Detroit, said that loss of the subsidies, along with recent cuts in Medicaid payments to doctors, are likely to drive up waits at places serving the uninsured as well as Medicaid recipients.
"If you are uninsured or a Medicaid enrollee in metro Detroit, you are going to have a very hard time finding affordable health care," she said. "Most of the free clinics are at capacity."
Source: InsuranceNewsNet December 2009
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