COBRA subsidy proposal receives another setback
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WASHINGTON—Senate Democratic leaders on Thursday failed once again to win enough support to stop debate and bring to a floor vote a tax extenders bill, delivering another blow to backers on extending federal COBRA premium subsidies.
Sen. Robert Casey, D-Pa., had proposed an amendment to the tax bill, H.R. 4213, that would extend through Nov. 30 the 65% premium subsidy to employees who have been laid off since June 1.
Sen. Casey originally had proposed that the subsidy, as in the case for employees laid off through May 31, be provided for up to 15 months, but he scaled back the extension to six months in order to bring down the cost.
But, with a 57-41 vote, Senate Democrat backers of the tax measure fell short of the 60 votes they need to invoke cloture and stop debate on the tax bill. Senate Republicans and some fiscally conservative Democrats oppose the measure because it would add to the federal deficit.
With the future of the tax extender bill now very much in doubt, backers of the COBRA premium subsidy extension now may have to try to find a new legislative vehicle to try to attach an extension.
The last congressional extension of the subsidy expired May 31, which means employees involuntarily terminated since June 1 have not been eligible to receive the subsidy.
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