Senate Bill Hurts Construction

by the Small Business Owner

Under the new provisions in the Senate Healthcare Reform Bill, Senator Merkley (D-OR) singled out small construction firms for harsher treatment than any other industry. Most employers with fewer than 50 workers who don’t offer health coverage are exempt from fines and the new regulatory regime that applies to larger employers. The newly added provision aims at construction firms employing as few as five workers. They will be subject to health care coverage fines and regulatory requirements.

All construction firms (and only construction firms) with more than five employees will now face fines if they don’t offer health care benefits or if the benefits do no not meet a minimum requirement. Employers must cover 60 percent of the actuarial value of an employee’s premium. If an employee’s share of the premium exceeds 9.8 percent of their household income, then the employee can opt out of the employer provided coverage and receive government subsidies to help offset the costs. The employer can face penalties of $750 per full time employee if the coverage does not meet these requirements.

The construction industry has one of the largest unemployment rates and both residential and commercial contractors are desperately trying to stay afloat. Why punish small business? It’s all about Union control, which wants to put the small non-union shops out of business. Shame on Congress for manipulating our laws to satisfy the greed and the desire for power of Union leadership!