Health-Related Provisions to the Economic Stimulus Package Proposed by House Democrats

As expected, House committees last week approved a number of health-related provisions to the economic stimulus package proposed by House Democrats, setting the stage for an expected House floor vote this week.*

The House provisions include a 65 percent subsidy for COBRA premiums for workers laid off between Sept. 1, 2008 and Dec. 31, 2009, the right for certain workers (55-year-olds employed for a decade or more) to keep COBRA (with no subsidy) for a full 10 years as a bridge to Medicare, aid to states for low-income health programs, a 4.9 percent increase in the matching rate for federal funds for Medicaid through 2010, and incentives for Medicare and Medicaid participating doctors to purchase and use new health information technology. Beginning in 2016, health care providers who don't use certified health technology would begin to see their Medicare payments decrease, by a growing percentage each year. The horse trading will continue until the final floor votes.

* The House passed it on January 28, 2009 and it now goes to the Senate.

Source: Health Reform Weekly, Aetna. January 29, 2009.