Failing to Extend FMAP and COBRA would have drastic consequences in Washington

With more than 300,000 workers in Washington unemployed, it’s critical that Congress extend critical provisions that help struggling families during the slow economic recovery.

Just before Memorial Day recess, the U.S. House passed H.R. 4213, which would, among other things, extend the emergency jobless benefits millions of long-term unemployed workers are relying upon. 

However, in last minute negotiations two critical provisions were left out of the bill.  The first is federal aid to states through increased federal matching dollars for Medicaid spending, known as FMAP (Federal Medical Assistance Percentage).  The other is an enhanced COBRA program that provides subsidized health coverage to unemployed or underemployed workers.

When Congress returns from recess today, the U.S. Senate will likely take up the House-passed bill immediately.  If they fail to include these provisions in their version, Washington state will face some dramatic consequences.

FMAP

As part of last year’s Recovery Act, states received federal assistance through an increase in federal matching dollars on state Medicaid spending.  This aid has helped our state weather the impacts of the national recession by preventing damaging cuts to health care services and saving jobs in the public sector.  But the increased FMAP provision is set to expire at the end of 2010, a full six months before our state fiscal year ends in June of 2011. 

If this FMAP provision is not extended in the final version of the bill, Washington would likely face deeper cuts to health care services to make up for the $480 million loss in funding at a time when more families are relying upon them.

COBRA

Also part of the 2009 Recovery Act was a temporary improvement to COBRA, which provides health coverage for workers in between jobs.  The improvement gave qualifying workers a 65 percent bump to their health benefits, giving them access to affordable insurance while they are out of work.  But that help expired at the end of May.

An estimated 3,502 workers in Washington were receiving the enhanced COBRA subsidy each month.  Without an extension of this program, thousands of workers will lose the only reliable health coverage they can afford.