Letters to the Editor

Stop the Terrorists from Taking Health Insurance Away From New York's Workers

October 26, 2001

The terrorist attacks of September had many negative repercussions for the nation, including a significant increase in the number of people without health insurance.

The economy was already slowing prior to September 11 with accompanying job layoffs. The terrorist outrages contributed substantially to more layoffs, especially in the tourism industry.

New York state is especially dependent on revenues from tourism. From the attractions of Times Square to the wineries of the Finger Lakes, tourism provides a livelihood for a broad range of New York's residents.

Most Americans get health insurance through their place of employment. Now, many New Yorkers left unemployed by the attacks have been hit by a double whammy - the loss of their health insurance as well as their income.

The tourism industry relies on many moderate-income workers to function such as housekeeping staffs, restaurant workers, and retail salespeople. These workers are least able to withstand the financial blow of unemployment and a lack of insurance.

Congress needs to take quick action to help American workers keep their insurance. One way would be to provide subsidies and expand the time period in which laid-off workers may retain health insurance through The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

At present, COBRA generally provides that employees may continue receiving health care insurance coverage through a group plan for 18 months after employment termination, although employers are not required to contribute to the premium payment. This means the unemployed must pay for the full cost of their health insurance, which many cannot afford, especially when they have no job.

"The COBRA Plus Action of 2001," introduced by Senator James Jeffords, would help by providing an additional nine months of COBRA coverage. It would also offer an individual tax credit to cover up to 50% of the health insurance premium.

An unemployed worker's ability to take advantage of COBRA depends on its affordability. Often, unemployed individuals cannot afford to pay for even half of the insurance previously provided by their employer. The COBRA subsidy should be increased to 100 percent for such low-income individuals. This would help tens of thousands more people who are unemployed and unable to afford a 50 percent contribution to the purchase of health insurance.

Senator Jeffords' individual tax credit would help increase participation in COBRA by several means. It is refundable, so those with no tax liability will still receive the credit, and it includes an advance payment option that allows the credit to be paid directly to the insurance company.

In addition to expanding COBRA, Congress should consider a variety of other approaches to reduce the number of uninsured.

  • Provide State Children's Health Insurance Program (SCHIP) coverage or Medicaid to the parents of uninsured children (these adults typically have no health insurance themselves) and simplify the enrollment process.
  • Provide transitional coverage for up to 24 months for Medicaid and SCHIP enrollees who lose eligibility.
  • Consider tax credits for the purchase of health insurance as another way to increase coverage.

The United States has responded to the terrorist attacks with a great sense of unity and commitment to a common goal. The nation is currently engaged in a military assault on the terrorists and their Taliban accomplices. Yet, at the same time, it has launched numerous efforts to help the innocent Afghanistanis who are caught in the middle of the fighting. Both actions bear eloquent testimony to America's sense of justice and its commitment to upholding human values.

This same sense of national resolve needs to be turned to assisting the uninsured. After all the tragedy they have caused, the terrorists should not be allowed to create more misery by taking the health insurance away from thousands of people.

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