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“REINTRODUCTION OF THE BROKEN PROMISES RETIREE HEALTH COVERAGE ACT OF 2001” mentioning the U.S. Dept of Labor was published in the Extensions of Remarks section on pages E367-E368 on March 15, 2001.
The publication is reproduced in full below:
REINTRODUCTION OF THE BROKEN PROMISES RETIREE HEALTH COVERAGE ACT OF
2001
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HON. GERALD D. KLECZKA
of wisconsin
in the house of representatives
Thursday, March 15, 2001
Mr. KLECZKA. Mr. Speaker, I am reintroducing legislation today, entitled the Broken Promises Retiree Health Coverage Act, which would assist our nation's retirees who face the unexpected loss of health care benefits promised by a former employer.
Thousands of hard-working retirees have been forced to cope with sudden cancellations and reductions of their health coverage over the past several years. In my hometown of Milwaukee, 750 retirees were left high and dry when the Pabst Brewing Company shut down its operations and cancelled retiree health coverage in 1996. Although they went to court and finally won a nominal prescription drug benefit, the loss of promised health coverage was a serious blow to their financial security. This treatment is not what retirees should get in exchange for many years of loyal service to their employer.
More recent events in Milwaukee underscore the pressing need for this legislation. Earlier this month, a bankruptcy court judge's decision left an additional 490 Milwaukee-area retirees plus their spouses and dependents of bankrupt Outboard Marine Corporation without any employer-promised health insurance.
Unfortunately, reports indicate that this problem will only get worse. Last year, the number of large firms with 500 or more employees offering health coverage for pre-Medicare-eligible retirees fell from 35 percent to 31 percent. This alarming statistic proves that coverage loss is not an isolated incident, but part of a disturbing national trend. As I reintroduce this measure in the 107th Congress, I renew my commitment to providing meaningful support to the retired workers and their families across the nation who have or will experience the tremendous loss of retiree health coverage.
My legislation would establish a safety-net for retirees. First, the bill would require employers to give at least six months notice to retirees about their impending loss of health coverage so retirees may be more prepared to handle the coverage loss, and if possible, seek other insurance options. To ensure the cancellations or reductions are lawful, the U.S. Department of Labor must certify that any changes to retiree health benefits meet the requirements of the collective bargaining agreement. Second, the bill ensures that health care options remain for those retirees over 55 by allowing retirees to either buy into the Medicare program or buy into their former employer's current health coverage plan until they turn 65 and become eligible for Medicare. Lastly, the bill would allow retirees, who did not sign up for Medicare or Medigap when they turned 65 years old, to apply for the programs without late-enrollment penalties.
Mr. Speaker, this legislation is critical to the retirement security of all American workers. I urge my colleagues to show their support for retired workers and their families by cosponsoring this bill.
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