Rep. Ed Whitfield (R-Ky.) recently released draft legislation that would ensure continued health care coverage for miners in danger of losing their benefits resulting from the bankruptcy of Patriot Coal Company.
“It is critical that we protect the health care benefits of the thousands of Kentucky miners who have worked hard their entire careers to earn those benefits,” Whitfield, the chairman of the House Subcommittee on Energy and Power said. “That is why I am considering legislative options to ensure that the hardworking miners who took to the mines day in and day out don’t lose the health care that they have rightfully earned.”
Patriot Coal Company filed for Chapter 11 bankruptcy protection in July. It said it would not be able to emerge from the bankruptcy without significant changes to retiree health care obligations.
A bankruptcy court recently ruled that Patriot Coal is authorized to transition retirees into a Voluntary Employee Beneficiary Association. It is expected that the United Mine Workers of America will appeal the court’s ruling.
Whitfield’s draft legislation aims to eliminate the uncertainty regarding the solvency and availability of the VEBA.
“Protecting the health care benefits is just the first step in what may very well amount to a multifaceted process,” Whitfield said.