Under the agreement, the Department of Health & Human Services will increase its Medicare reimbursement to the United Mine Workers Association (UMWA) Health & Retirement Funds by an additional $US100 million in each of the next two years.

The million-dollar federal bailout will keep the Medicare program running in the short-term but does not solve the looming financial crisis facing UMWA's health care funds.

Established in 1992, the program provides prescription drug benefits to 55,000 retired coal miners and miners' widows.

"This is an enormous victory for our coal miners in West Virginia and across the country," senator Jay Rockefeller said.

"In 1992, the Federal Government agreed to provide health care benefits for a group of retired miners and their families. Yet year after year, we have had to fight to keep this commitment and honour the promises made to miners."

UMWA president Cecil Roberts said the extension would benefit 18,000 West Virginia miners and their families, Associated Press reported.