Portman, Brown Introduce Extension of Health Coverage Tax Credit

Statement

Today, U.S. Senators Rob Portman (R-OH) and Sherrod Brown (D-OH) introduced legislation that will extend for four years the Health Coverage Tax Credit (HCTC) for retirees who lost their health care coverage -- in addition to their pensions and other benefits -- when their employers either entered into bankruptcy or laid off workers due to foreign trade. The HCTC is critically important for many hardworking Ohioans, including as many as 5,000 Delphi salaried retirees in Dayton, the Mahoning Valley, and Sandusky. In addition, a few hundred workers from the Lordstown General Motors plant have applied for Trade Adjustment Assistance (TAA) and would benefit from the HCTC as well. Reps. Mike Turner (R-OH) and Jared Golden (D-ME) introduced companion legislation in the House of Representatives.

"Thousands of retirees in Ohio and their families depend on the Health Coverage Tax Credit, and this bipartisan legislation will ensure it will be available for them," Portman said. "Since I came to the Senate, I've fought for multiple extensions of the HCTC, including my bill that was included in the Trade Preferences Extension Act of 2015 the last time the credit was extended. These hardworking Ohioans rely on the HCTC for affordable health insurance after their pensions were terminated or after they were adversely affected by foreign trade, and I urge my colleagues to join me in supporting this legislation to ensure the stability of health coverage for these individuals and their families."

"The Health Coverage Tax Credit is a lifeline for thousands of Ohioans, many of whom are living on fixed incomes after losing their pensions and healthcare. This critical legislation will help ensure these retirees and workers get the relief they need in order to afford healthcare," said Brown.

The HCTC, which is set to expire on January 1, 2022, helps to reduce the cost of maintaining health insurance coverage for a number of individuals that are either receiving TAA benefits or are between the ages of 55-64 years old whose pensions were terminated and are being administered by the Pension Benefit Guaranty Corporation. Portman and Brown worked together to extend this tax credit in 2011, 2015, and 2019.

"The HCTC has unquestionably been a life saver for the DSRA membership. Because we lost all our health care and life insurance during the Auto Bailout, many of our members were forced to either go without health care insurance or pay a large majority - or in some cases even more than - their reduced pensions. HCTC makes Health Care insurance more affordable, and only applies to those who need it. We are grateful to Senator Portman for championing the effort to keep the HCTC a priority," said Bruce Gump, Chairman, Delphi Salaried Retirees Association.

"APFA commends Senator Portman and Senator Brown for introducing legislation that would reauthorize the Health Coverage Tax Credit (HCTC) next year through 2025. This successful, bipartisan program has helped many retired workers maintain affordable health insurance. For APFA members who lost their full pensions during airline bankruptcies, the HCTC has served as a critical bridge to Medicare eligibility. Thank you, Senator Portman and Senator Brown, for your continuing leadership to ensure hard-working Americans can afford and maintain quality health coverage," said Julie Hedrick, National President, Association of Professional Flight Attendants.

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