WASHINGTON – U.S. Rep. Benjamin Cardin today joined with Rep. Phil English, R-PA, in introducing legislation that will help retired steel workers over age 65 pay for their supplemental health care premiums and their Medicare+Choice premiums.

In 2002, Congress passed the Trade Adjustment Act to give retirees age 55 to64 a refundable 65% tax credit for the purchase of health insurance. Earlier this year, the Maryland General Assembly unanimously passed legislation establishing a high-risk insurance pools, making Marylanders eligible for the tax credit.

The Steel Industry Retirees Benefits Protection Act will expand this tax credit to help retirees who have Medicare pay for their supplemental health care premiums and Medicare +Choice premiums. It also will extend the credit to steel companies that are still in business and are providing retiree benefits.

"This measure will significantly help retired steel workers who are Medicare eligible and steel companies. For every dollar steel companies spend on retiree health benefits, they will get back 65-cents in the form of a credit on their federal income taxes. If no taxes are owed, they would receive a refund," said Rep. Cardin, a member of the Steel Caucus in the House.

The Congressman also stressed that this legislation does not relieve existing steel companies from any of their retiree obligations, but "it will help the U.S. steel industry with the critical problem of legacy costs as it strives to compete with heavily-subsidized foreign steel manufacturers."

Since 1997, 32 American steel companies have been forced to seek bankruptcy protection, including Bethlehem Steel Corp. This year, the International Steel Group purchased Bethlehem Steel. Nationally, more than 100,000 steel retirees have lost their medical benefits; in Maryland, 19,000 retirees lost their benefits.

In May, Rep. Cardin cosponsored the Health Care Credit Enhancement and Steel Security Act to provide retired steel workers age 50-64 with greater access to health care benefits. He also has sponsored the Steel Industry Relief Act to provide health care for retired steel workers, the Steel Revitalization Act to deal with the glut of illegally dumped imports and the Trade Law Reform Act to strengthen anti-dumping and countervailing duty laws.

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