For Release: Friday, December 8, 2006
Contact: David Gillies: 202-225-5661

HOUSE PASSES LEGISLATION TO FUND COAL MINER HEALTH BENEFITS

Washington - U.S. Congressmen Jerry Costello (D-IL) announced that the House of Representatives today passed legislation to provide funding to cover the health care costs of coal miners and retirees.  If approved by the Senate and signed into law, which is expected, the 1,951 eligible individuals in the 12th Congressional District would have the health care benefits they earned fully covered. 

"This is extremely important legislation - we have been working on this fix for years," said Costello.  "I am pleased we were able to get this accomplished and can provide some peace of mind for the thousands of miners and their families who live in fear of losing their health care.  Given that many personal bankruptcies are caused by a major medical condition, these provisions are especially critical."

Three separate funds - the Combined Benefit Fund (CBF), the 1992 Benefit Fund ('92 Fund) and the 1993 Benefit Fund ('93 Fund) - were established by the Coal Act of 1992 and a later agreement to cover health benefits for miners whose employer had gone out of business.  Active coal companies pay into the funds, but due to the fact that fewer companies remain in business and interest on the funds has declined, adjustments have been needed to keep the Funds, particularly the '93 Fund, solvent. 

The legislation eliminates the current $70 million annual cap on payments to the Funds, allowing payments equal to the amounts estimated by the plans' trustees to be necessary to pay retirees' health benefits.  It also provides mandatory payments from the federal treasury to the Funds, when needed, with an annual cap of $490 million.  The CBF will be fully funded in fiscal year 2007, and payments to the '92 and '93 Funds will be phased in until 2010, when they will be fully funded. 

Costello, a senior member of the Energy Subcommittee of the House Science Committee, last year introduced H.R. 1600 with a bipartisan group of legislators to keep the funds solvent.  He has been a leader in securing federal funds to research and develop clean coal technologies and continues to work to locate the FutureGen clean coal power plant in Illinois.

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