Golden Renews Bipartisan Effort to Protect Health Coverage Tax Credit for Retirees, Including Dozens of Former Madawaska Mill Workers

WASHINGTON — Congressman Jared Golden (ME-02) announced today the reintroduction of the bipartisan Health Coverage Tax Credit Reauthorization Act, which would extend the Health Coverage Tax Credit (HCTC) through 2025. The HCTC helps dozens of Maine retirees, including retired millworkers from Twin Rivers Paper in Madawaska, afford health insurance. Golden secured one-year extensions of the HCTC for 2020 and 2021, but the credit lapsed at the end of 2021 as congressional leaders' negotiations over omnibus appropriations and tax legislation stalled.

"For years, dozens of Madawaska retirees have relied on the Health Coverage Tax Credit to afford health insurance. But each year, we have to fight to reauthorize the credit, creating uncertainty and unfair burdens for retirees in Maine and across the country. The credit is currently lapsed, and that's the last thing people need in a pandemic," said Golden. "It's time to end this cycle of short-term patches and pass a multiyear extension of the HCTC."

The HCTC provides refundable tax credits to cover more than 70% of the cost of health insurance premiums for two kinds of workers: those who have been certified to have lost their jobs due to outsourcing, and eligible retirees whose pensions have been taken over by the Pension Benefit Guaranty Corporation as a result of the financial instability of a previous employer.

Golden has been a long-time advocate for the HCTC. The need for HCTC extension was first brought to Golden's attention by Twin Rivers Paper Mill workers when the Congressman met with them in Madawaska in February 2019. The Congressman then helped lead the bipartisanHealth Coverage Tax Credit Reauthorization Act of 2019 with Republican Congressman Mike Turner (R-OH), and he successfully pushed for one-year extensions of the HCTC for 2020 and 2021. The bipartisan Health Coverage Tax Credit Reauthorization of 2021 is sponsored by Congressman Turner with Congressman Golden as the bill's co-lead.

The HCTC, which is often paid on behalf of recipients throughout the year in advance payments, had previously been extended through omnibus end-of-year appropriations and tax packages. However, congressional leaders have not yet reached agreement on such legislation for Fiscal Year 2022. To keep the government running, Congress will need to pass either such legislation or a continuing resolution (CRC) when the current CR expires on February 18.

###