Mr. President, I ask unanimous consent to set aside the second-degree amendment to the Reid-McConnell substitute to offer amendment No. 4763. Mr. President, Senator Stabenow, Democrat from Michigan, Senator Wicker, a Republican from…
Mr. President, I ask unanimous consent to set aside the second-degree amendment to the Reid-McConnell substitute to offer amendment No. 4763.
Mr. President, Senator Stabenow, Democrat from Michigan, Senator Wicker, a Republican from Mississippi, and I bring this amendment to the floor to extend for 1 year modest enhancements to the Health Coverage Tax Credit Program. I am going to throw a slight curve ball and start with the cost of this amendment, which will help place its benefits into context.
While we are awaiting a final score, based on some preliminary numbers, this amendment should come in under $50 million. That is less than .006 percent of the cost of this legislation. It is $50 million out of roughly $800 million.
Now let's look at who the amendment helps.
It helps Americans who took a kidney punch when the companies for which they worked either packed up and moved their operations overseas, or when the companies for which they worked went bankrupt and turned their pension obligations over to the Pension Benefit Guarantee Corporation.
I probably do not have to tell you what it means when an American's pension goes over to PBGC. It means that American's pension is slashed--often dramatically.
So these are Americans who either lost their jobs and their health coverage, or lost large chunks of their pensions and their health coverage.
As I stated earlier, this amendment would extend modest enhancements to the health coverage tax credit or HCTC.
The HCTC was established 8 years ago to help these workers and retirees purchase private health coverage to replace the employer- sponsored coverage they lost.
Unfortunately, because of the modest size of the tax credit and other limitations, many credit-eligible individuals have remained uninsured.
And as too many Americans know, the combination of no health insurance and a dramatically reduced pension spells financial hardship. Dramatic financial hardship, particularly for people forced into early unplanned retirement.
These are Americans who worked hard, were loyal to their companies, earned their pensions and employer-sponsored health coverage day after day after day until the day they watched it all evaporate.
Americans like Mike, from Brookville, OH, who wrote me to let me know how important the tax credit is and how worried he is that it will revert back to covering only 65 percent of premium.
Mike is a Delphi retiree, thousands of who were left high and dry when the new GM abandoned them.
Larry from Miamisburg, OH, is another Delphi retiree.
In his letter to me, he said: I am writing to ask for help for us the Delphi retirees. First for the HCTC increase and ultimately for the loss of our retirements. Sir, they have taken everything from us, even now our dignity.
Larry and Mike are victims of what can only be called a myopic pension deal cut by the new GM during its bankruptcy proceedings.
The new GM clung to an agreement signed back in 1999 in order to provide full pensions to some union Delphi retirees and allow other nonunion and union retirees to receive deep pension cuts.
Both groups of former employees--those who received their full benefits and those who did not--devoted most of their careers to GM before Delphi was spun off.
Both groups of former employees earned their pensions by working hard for GM year-in and year-out.
But Mike, Larry, and others like them were forced to live with financially devastating pension cuts, while their counterparts received their full pensions.
And now these same retirees may once again lose access to health coverage.
To prevent it, we need to extend the enhanced HCTC provisions.
Under the American Recovery and Reinvestment Act ARRA, the health coverage tax credit was increased slightly and the rules surrounding it were made more flexible.
These modest changes enabled tens of thousands of trade-affected workers and retirees to use the tax credit and purchase private health coverage to replace the employer-sponsored health benefits they lost. Specifically the tax credit now covers 80 percent, rather than 65 percent of coverage costs; rather than 65 percent of coverage costs; beneficiaries are allowed to use the coverage to purchase coverage for themselves and their spouses; and they are allowed to apply the credit to less expensive coverage under a Voluntary Employee Benefit Association VEBA.
Since these provisions were put into place, the number of displaced workers and retirees using the health coverage tax credit has more than tripled, increasing from about 14,000 to approximately 50,000.
But the health coverage tax credit provisions are set to expire at the end of this year.
We can not let that happen.
It does not matter where the enhanced health coverage tax credit provisions come from. It could have been the Recovery Act. It could have been a bill the minority championed. The vehicle does not matter.
But the merits of these provisions do matter. That is why Senators Stabenow and Wicker and I bring this amendment forward.
These provisions have merit. They will keep Americans insured in an environment where the lack of coverage, coupled with pension cuts, could mean impoverishment. If we do not extend these provisions, the spouses of former workers will definitely lose their coverage, and those former workers themselves likely will. That is in no one's best interests.
As I mentioned earlier, approving this amendment would likely increase the cost of this bill by less than .006 percent.
That is a small price to pay for a lifeline. It is a small price to pay to keep middle class Americans from slipping into poverty.
This should not be a matter of debate. This should not be the focus of a partisan divide. This should be a small step all of us take together on behalf of Americans who did what we asked them to do.
They deserve our respect, they deserve our consideration, and--as our economy continues to pose challenges even before the hardships these Americans face--they deserve this modest extension of tax credit benefits.
Mr. President, I ask unanimous consent the amendment, No. 4805, be printed.