Genesee News

WASHINGTON—Congressman Dan Kildee (MI-08)On June 7, 2023,  introduced the Bob von Schwedler Permanent Health Coverage Tax Credit Expansion Act, new legislation to help Michigan workers and retirees—including Delphi Salaried Retirees and those hurt by bad trade deals—cover the cost of health care.

“Every Michigander deserves access to quality, affordable health care. That includes Delphi Salaried Retirees who were left hanging through no fault of their own and hardworking Michiganders who have lost jobs due to bad trade deals,” said Congressman Kildee. “I’m proud to introduce my bill to restore this critical program and make it permanent, to lower health care costs for thousands of Michigan workers and retirees.”

Congressman Kildee’s bill would permanently extend the Health Coverage Tax Credit (HCTC). The HCTC helps Americans cover their health insurance costs if they are retired and their pensions have been taken over by the Pension Benefit Guaranty Corporation (PBGC), or if their job was outsourced abroad and they qualify for Trade Adjustment Assistance (TAA). Thousands of Delphi Salaried Retirees qualify for this credit, along with Michigan workers who have lost their jobs due to bad trade deals. Congressman Kildee’s legislation would also increase the credit to cover 80% of health insurance costs for workers and retirees who claim the credit.

In addition to Congressman Kildee, the bill is cosponsored by Representatives Earl Blumenauer (OR-03), Elissa Slotkin (MI-07), Dwight Evans (PA-03), Gwen Moore (MI-04) and Terri Sewell (AL-07).

Until it expired in December 2021, many Delphi Salaried Retirees and their families relied on the HCTC to help pay for their health insurance. Without it, the health and financial stability of many Delphi Salaried Retirees and workers is in danger. These hardworking retirees have already suffered significant losses to their benefits and financial security because of General Motors’ 2009 bankruptcy, with devastating impacts on many of their lives.

“On behalf of the salaried retirees of Delphi, we thank Congressman Kildee for his representation and initiative to go to bat for us again to improve the lives of thousands of retirees. Congressman Kildee's announcement about the Bob von Schwedler Permanent Health Coverage Tax Credit Expansion Act, which would increase the Health Coverage Tax Credit from 72.5% to 80% and make the credit permanent is fantastic news and much appreciated by members of the DSRA Benefit Trust and many others outside of Delphi whose pension is now administered by the PBGC,” said Paul Beiter, Chair of the Delphi Salaried Retirees Association (DSRA) Benefits Trust.

Congressman Kildee’s legislation is named after Bob von Schwedler. Bob worked as a salaried manager at Delphi for almost 36 years before his pension plan was terminated due to the GM bankruptcy, just one year into retirement. Bob was then diagnosed with multiple myeloma, an incurable bone marrow cancer. Bob’s treatment came with many hospital visits and bills, with some costing as much as $500,000. The HCTC was critical in helping Bob cover the cost of treatment until he qualified for Medicare. Bob is now in remission and attributes his recovery, in part, to the HCTC.

“After receiving my Delphi pension for less than a year, my pension plan was terminated and taken over by the PBGC.  At the same time, my ‘lifetime’ health care benefit was terminated.  This was a doubly shocking financial event that caused both my wife and I to wonder how we were going to survive,” said Bob von Schwedler, former Delphi Worker. “What helped us greatly was the Health Coverage Tax Credit. In 2016, when I was diagnosed with multiple myeloma, the HCTC covered the entire cost of my treatment. You cannot believe what a relief it was to know that I did not find myself in a severe financial situation in order to fight a non-curable cancer. There is no doubt that Congressman Kildee’s bill would be extremely beneficial to the many Americans who are similarly affected.”

“Practically every week the National Retiree Legislative Network receives emails asking when the Health Coverage Tax Credit is going to be renewed,” said Bill Kadereit, President of the National Retiree Legislative Network. “The NRLN has consistently advocated for HCTC and understands how important it is to their members. After years of being reauthorized, HCTC expired in December 2021. It was very disappointing that Congress ignored our pleas to make the HCTC permanent in 2022. It is time for members of both parties to vote to pass the Bob von Schwedler Permanent Health Coverage Tax Credit Expansion Act. On behalf of all the members of the NRLN, we thank Congressman Kildee for championing this issue.  Passage of this bill will help those who lost their company-sponsored healthcare insurance through no fault of their own.”

“The HCTC has helped countless workers and retirees maintain access to vital healthcare benefits after experiencing a job loss due to foreign trade or having their pension moved to the PBGC. Congressman Kildee’s bill will restore and increase this vital lifeline for hardworking families across Michigan and the United States. United Steelworkers thanks Congressman Kildee for ensuring these hardworking families can afford to maintain their healthcare coverage,” said Roy Houseman, Legislative Director of United Steelworkers.

“Thank you, Congressman Kildee, for your persistence in reauthorizing the Health Coverage Tax Credit. The HCTC is absolutely critical to keeping health care costs manageable for our flight attendants who will retire with PBGC pensions. These are workers who already lost retiree medical benefits during airline bankruptcies and have been relegated to reduced pension formulas under the PBGC. However, the HCTC will help reduce some of the financial burden for those between ages 55 and Medicare eligibility. Workers should not have to worry about the cost of basic healthcare,” said Julie Hedrick, National President, Association of Professional Flight Attendants (APFA).

For years, Congressman Kildee has led the fight in Congress to support Delphi Salaried Retirees. In July 2022, the House of Representatives passed Kildee’s bipartisan Susan Muffley Act—supported by Republicans and Democrats—to restore the terminated pensions of more than 20,000 hardworking Delphi Salaried Retirees.

Original source can be found here.