President Biden’s COVID Relief Plan Hints at Healthcare Priorities

President Biden just released an emergency legislative package that includes initiatives to make health insurance coverage more affordable but does not include a public health option or an option to lower the Medicare eligibility age.

Preserving and Expanding Health Coverage
Biden is calling on Congress to do the following:

• Subsidize COBRA through the end of September 
• Increase the value of the Premium Tax Credit to lower or eliminate health insurance premiums and ensure enrollees will not pay more than 8.5% of their income for coverage - including those who never had coverage through their jobs 

Below are other elements of the legislative package that may affect employers and employees:

A $15 Minimum Wage
Biden is also calling on Congress to raise the minimum wage to $15 per hour and end the tipped minimum wage and sub-minimum wage for people with disabilities.

Assistance for Small Businesses
President Biden is calling on Congress to:

• Provide grants to more than 1 million of the hardest hit small businesses
• Leverage $35 billion in government funds into $175 billion in additional small business lending and investment. With a $35 billion investment in successful state, local, tribal, and non-profit small business financing programs, Congress can generate as much as $175 billion in low-interest loans and venture capital to help entrepreneurs including those in the clean energy sector

The President wants to work with Congress to make sure that restaurants, bars, and other businesses that have suffered disproportionately have sufficient support, including through the Community Credit Corporation at USDA.

Paid Sick and Family Leave
The December down payment extended the Families First employer tax credits through March 2021, but it did not renew the requirement that employers provide leave. President-elect Biden is calling on Congress to:

• Put the requirement back in place and eliminate exemptions for employers with more than 500 and less than 50 employees. He will also make it clear that healthcare workers and first responders also get these benefits. Closing these loopholes in the Families First Coronavirus Response Act will extend emergency paid leave to up to 106 million additional workers
• Provide over 14 weeks of paid sick and family and medical leave when a child or loved one’s school or care center is closed. Also, provide the leave for people who have or are caring for people with COVID-19 symptoms or who are quarantining due to exposure and for people who need to take time to get the vaccine
• Expand emergency paid leave to include federal workers
• Provide a maximum paid leave benefit of $1,400 per week for eligible workers. This will provide full wage replacement to workers earning up to $73,000 annually
• Reimburse employers with less than 500 employees for the cost of this leave. Extending the refundable tax credit will reimburse employers for 100 percent of the cost 
• Reimburse state and local governments for the cost of this leave
• Extend emergency paid leave measures until September 30, 2021