News

Health Care Passes Senate Hurdle, Still Must Be Merged with House Version

In a rare early morning vote today, the Senate passed the Patient Protection and Affordable Care Act, 60 to 39, along party lines with all Republicans opposing it (Jim Bunning (R-Ky.) did not vote).  The bill fails to lower premiums, increases federal health care spending, imposes $500 billion in new taxes on health care and small businesses and exacerbates the growing federal deficit.  The bill expands Medicaid and shifts millions in costs to the states, adds regulatory burdens that will add to the cost and risk of doing business for employers, and includes a waiting period that lacks flexibility and may result in fewer full-time workers and less hiring overall. A change made to the legislation just this week singles out the construction industry. The provision, added by Senator Merkley (D-Ore.) singles out small construction firms for harsher treatment than any other industry. Whereas most employers with fewer than 50 workers that do not offer health coverage are exempt from fines and the new regulatory regime that applies to larger employers, under the newly added provision construction firms employing as few as five workers will be subject to health care coverage fines and regulatory requirements.  AGC received an overwhelming response from the call to action of the membership. In 24 hours, over 3,500 letters were generated to the Senate, giving voice to construction employers' displeasure with this amendment. The amendment appears to have been added without full knowledge of a number of senators in both political parties. The legislation now moves into conference where it will have to be merged with the House. This process will involve the Democratic House and Senate leadership, the president and his aides. The final outcome of the legislation remains uncertain but Democratic leaders are guessing that the final outcome will be a bill similar to the Senate bill, and it will be delivered to the president for his signature in early 2010. This week, AGC delivered a letter to Congress on the health care bill and the Merkley amendment. It remains important for the construction industry to remain engaged on the issue; although the process has moved into conference we must remain united in opposition to a public option, expansion of employer and individual taxes and excessive spending. It is extremely important to keep the pressure on Congress to remove the language excluding the construction industry from the small employer exemption. You can use the tools of the Legislative Action Center to voice your concerns.