Congressional action–and lack of it–is not only affecting unemployment benefits but also is intertwined with effects on Social Security programs and Medicaid.
According to a May 28 CNNMoney.com piece, “Democrats [in the House] spent much of the week trying to round up votes to extend the jobless benefits deadline,” and the “House voted Friday to extend the deadline to file for federal unemployment benefits, but not before the Senate recessed for a week-long Memorial Day break. So jobless Americans will start running out of benefits after June 2.”
“As a result,” says a May 29 BusinessWeek article, “19,000 Americans will see their jobless benefits interrupted by June 5, with that number projected to grow to more than 320,000 by the end of the second week of June, according to the Labor Department.”
Apparently, the Memorial Day break was not enough respite. One headline, from the June 10 edition of The Miami Herald, tells the tale: “Congress takes long weekend, lets jobless benefits hang.”
From that article: “Meanwhile, the National Employment Law Project estimated that 325,000 people won’t be able to collect benefits. This is the third time that Congress has missed on a deadline for extending the benefits; it’s expected that they’ll get paid retroactively.
“In addition, people laid off after June 1 won’t be eligible for government help with their health insurance, and the government’s program to fund summer jobs – which had been expected to provide an estimated 330,000 jobs for at-risk youths – remains unfunded and thus stalled.”
Also up in the air is what happens to needed legislation for Medicaid.
According to the May 28 CNNMoney.com piece, “The final version, approved by a 215-204 vote, extended the deadline to file for unemployment benefits through November, but jettisoned sending $24 billion in Medicaid assistance to the states and extending the 65% federal subsidy for COBRA health insurance premiums.”
The May 29 BusinessWeek article reports: “Lawmakers also left without Senate action on forestalling a long-scheduled 21 percent cut in Medicare payments to doctors, set to take effect at the end of this month. The Centers for Medicare and Medicaid Services said it will delay paying physicians’ claims to give Congress more to time to act.
“ ‘This is complete mismanagement of a health-care program that America’s seniors and disabled rely on,’ said American Medical Association President J. James Rohack in a statement.”
Now–two holiday breaks later–says an MLive.com piece posted today, the Senate “measure does not provide state aid for Medicaid and welfare nor does it include any of the revenue-generating tax increases in the Democratic bill.”
And various states are plenty concerned. Here’s some snippets from a roundup at today’s Kaiser Health News:
From The Boston Globe: ” ‘The Massachusetts delegation sent letters yesterday to House and Senate leaders urging them to support an extension of Medicaid funding that officials in Massachusetts and other states say is vital to prevent drastic cuts in services and increases in layoffs.’ Newly elected Republican Sen. Scott Brown did not sign the letter because the proposal would add to the federal deficit. But the 11 Democrats in the delegation were adamant that the extension be approved. ‘Governor Deval Patrick and state lawmakers have been counting on the extension to fund about $800 million of next year’s budget.’ “
From the Charlotte Observer: “Legislators are at odds about what to do regarding ‘a $500 million hole that may appear in that budget if Congress doesn’t act on a Medicaid extension. Both the state Senate and the House have adopted versions of the budget that include the Medicaid money. … Now lawmakers are nervously waiting to hear whether Congress will approve the Medicaid extension bill that at least 30 states are counting on to help avoid teacher layoffs and other cuts’ “
From The Denver Post: “If Congress chooses not to approve a six-month extension of Medicaid help to the states, Colorado could face a $211 million budget hole and the prospect of another cut to K-12 education or other programs. Medicaid, a state and federally funded program that provides health care for the poor, now covers about 500,000 Coloradans. During the recession, the federal government has increased its share of Medicaid funding to the states, which have seen tax revenues plunge as Medicaid enrollment rose.”

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