WASHINGTON, D.C. – Today, U.S. Sens. Sherrod Brown (D-OH) and Rob Portman (R-OH) urged Senate leaders to maintain an extension of the Health Coverage Tax Credit (HCTC) in the tax extenders package, which they urge passage of before the 113th Congress adjourns for the year. Extending the Health Coverage Tax Credit is of particular importance to retired United Steelworkers and Delphi salaried retirees struggling to maintain affordable healthcare.
“Without the HCTC, which expired on January 1, 2014, these salaried retirees face financial hardship with up to 50 percent of their remaining pension going to fund their health care premiums,” the senators wrote. “The Delphi retirees have spent all of this year paying for health care out of their own modest income. If Congress fails to act, these retirees will continue to struggle to pay their health care expenses. This is an issue that cannot wait. We urge you to pass the two-year HCTC extension as part of the tax extenders package before Congress adjourns.”
Earlier this year, the Senate Finance Committee passed an amendment sponsored by Brown and Portman that would extend the Health Coverage Tax Credit (HCTC) for retirees who lost their health care coverage—in addition to their pensions and other benefits—when the companies for which they worked either entered into bankruptcy or moved operations overseas. The amendment was passed during the Senate Finance Committee’s consideration of a tax extenders passage.
Brown, a member of the Senate Finance Committee, has a long history of working to ensure Deplhi workers have access to affordable health coverage.
The senators’ letter can be found below.
November 20, 2014
Senator Harry Reid Senator Mitch McConnell
Majority Leader Republican Leader
U.S. Senate U.S. Senate
Washington, D.C. 20510 Washington, D.C. 20510
Senator Ron Wyden Senator Orrin Hatch
Chairman Ranking Member
Committee on Finance Committee on Finance
U.S. Senate U.S. Senate
Washington, D.C. 20510 Washington, D.C. 20510
Dear Leaders Reid and McConnell, Chairman Wyden and Senator Hatch:
We wish to reaffirm our strong support for an extension of the Health Coverage Tax Credit (HCTC) before the 113th Congress adjourns for the year. As you know, the HCTC provision was a bipartisan amendment to the Senate tax extenders package that was introduced in the Senate by Senator Sherrod Brown and Senator Rob Portman. Bipartisan legislation was introduced in the House by Congressman Tim Ryan and Congressman Michael Turner. A March 2014 letter supporting the HCTC was signed by 28 Members of Congress and Senators from across the country, and is attached for your reference.
Across the country, the HCTC has helped tens of thousands of struggling families pay their health bills. These families include thousands of Delphi retirees whose pensions were terminated during the GM rescue and subsequently turned over to the Pension Benefit Guarantee Corporation. As you know well, many of 20,000 Delphi salaried retirees lost significant portions of their promised pensions.
Without the HCTC, which expired on January 1, 2014, these salaried retirees face financial hardship with up to 50 percent of their remaining pension going to fund their health care premiums. The Delphi retirees have spent all of this year paying for health care out of their own modest income. If Congress fails to act, these retirees will continue to struggle to pay their health care expenses. This is an issue that cannot wait. We urge you to pass the two-year HCTC extension as part of the tax extenders package before Congress adjourns.
Thank you for your attention to this important issue.
Sincerely,
Rob Portman Sherrod Brown
U.S. Senate U.S. Senate
###