WASHINGTON – Rep. Benjamin L. Cardin today co-sponsored the Steel Industry Legacy Relief Act,  HR 4646 to provide health care for retired steel workers, many who risk losing their health coverage because of serious financial difficulties facing the U.S. steel industry.

    Since 1997, unfair dumping and predatory price-fixing by foreign steel makers has led to the bankruptcy of 33 U.S. steel companies. In March, President Bush decided to impost tariffs up to 30% on steel imports as a way to aid the U.S. steel industry. In October, Bethlehem Steel Corp. filed for bankruptcy, threatening the health care of some 14,600 retired steel workers who worked at Bethlehem Steel Corp.'s Sparrows Point, MD facility.

    The legacy bill would provide health care benefits to union and non-union retirees of steel, iron ore and coke companies. Once enrolled in the program, retirees and their dependents would receive coverage similar to a Medicare level plan and a prescription drug benefit similar to the benefit in the Federal Blue Cross/Blue Shield plan.

    "If we are going to maintain an American steel industry, we must provide relief for legacy costs that have made it impossible for the U.S. industry to compete. At the same time, we must make sure that retired steel workers don't lose their health care because the whole industry has been faced with unfair trading practices by foreign competitors," said Rep. Cardin, who represents many steel workers who worked at Sparrows Point.

    The U.S. Department of Commerce will run the health program through a seven-member board. The board will have two steel industry representatives, two union representatives and three representatives designated by the U.S. Steel Workers of America and the steel industry.

    The program would be funded through a Trust Fund created from revenue from several funding sources, including: three years of tariffs on steel imports announced by President Bush in the steel Section 201 proceedings; from companies whose retirees are enrolled in a voluntary contribution program; a $5 surcharge on steel companies that have acquired other steel; and, from future appropriations by Congress.

    To be eligible for the health benefits, retirees must have worked for a steel company that was operating as of Jan. 1, 2000 and that experienced a "qualifying event." A qualifying event can include: a permanent closing any time after Jan. 1, 2000 but before Jan. 1, 2004; a bankrupt company selling off at least 50% of steel making assets; and the enrollment of more than 200,000 retired steel workers and their dependents in the program, thereby giving all steel companies the right to "elect" to have their retirees enrolled in the program.