Congressman Tim Ryan Pushes for Extension of Health Care Tax Credit Critical to Delphi Salaried Retirees and United Steelworker Retirees
Washington, DC— Congressman Tim Ryan has joined a bipartisan group of members of Congress today in asking the Chairman and Ranking Member of the House Ways and Means Committee to extend the Health Coverage Tax Credit (HCTC) for five years. Congressman Ryan has been fighting to extend the tax credit for the last ten years as it helps thousands of retirees access affordable health care, especially those who have been affected by harmful trade practices. The HCTC can cover up to 72.5 percent of premiums in some cases. HCTC is set to expire on December 31, 2020.
“As we face a pandemic and a struggling economy, we have to ensure that retirees and others who have faced trade-related and business disruptions are able to access affordable premiums for the health care they need,” said Congressman Ryan. “The Health Care Tax Credit helps thousands of Delphi salaried retirees and retired United Steelworkers (USW) get the health care that they and their families deserve – we cannot leave them without coverage.”
“Our districts are home to working people who are facing threats to their families’ financial stability through no fault of their own and who need continued access to affordable health care through this credit.” Ryan and his colleagues wrote. “The addition of pandemic-related economic uncertainty, along with continued trade pressures and pension instability, mean that this is no time to let the HCTC lapse.”
“The Health Coverage Tax Credit is an extremely important benefit to thousands of retirees who have lost substantial pension annuity benefits and health care coverage due to their employer’s bankruptcy. Please consider a 5 year extension of this vital legislation,” said Paul Beiter, Delphi Salaried Retirees Association Benefit Trust Chairman.
Joining Congressman Ryan on the letter were Reps. Michael Turner (OH-10), Jared Golden (ME-02), Brian Fitzpatrick (PA-01), and Veronica Escobar (TX-16). Congressman Ryan is also a cosponsor on H.R.1939 - Health Coverage Tax Credit Reauthorization Act of 2019 which extends for five years the tax credit for health insurance coverage.
Full text of the letter sent today can be found below.
Dear Chairman Neal and Ranking Member Brady:
As the committee considers tax extenders legislation in the final months of 2020, we write to highlight the importance of the Health Coverage Tax Credit (HCTC) (26 USC 35) to our constituents and urge that it be extended for five years as outlined in H.R.1939. Our districts are home to working people who are facing threats to their families’ financial stability through no fault of their own and who need continued access to affordable health care through this credit. The addition of pandemic-related economic uncertainty, along with continued trade pressures and pension instability, mean that this is no time to let the HCTC lapse.
The HCTC is targeted to people who have lost their jobs due to outsourcing and to those whose pensions have been taken over by the Pension Benefit Guaranty Corporation as a result of their employer’s financial instability. In these cases, our constituents face financial risks that threaten their ability to afford health insurance for themselves and their families. In many cases, people using the HCTC are near the Medicare eligibility age, when health insurance age rating means they face particularly expensive premiums in the years before they qualify for Medicare. This makes the HCTC particularly important for our constituents in these situations to be able to continue to protect their health and that of their families.
For these reasons we urge the Committee to extend the HCTC for at least five additional years. Thank you for your consideration.