Democratic leaders are finalizing health care reform legislation this week in a two step process. First the House will pass the Senate bill complete with payoffs to Nebraska, Louisiana and Florida. The bill also includes the Merkley Amendment that singles out construction by repealing the small business exemption for construction contractors employing as few as five people. The House and Senate Budget Committees will then work on a package that modifies the Senate bill. Democrats will use the partisan reconciliation process to pass the final bill. AGC is concerned the final bill will be similar to the Senate bill, which fails to control cost, reduces the quality of coverage and options for coverage, and will result in higher premiums.
The Merkley Amendment, a provision targeting small employers in the construction industry remains in the Senate bill and the only chance for removing it is next week when the Budget Committee amends the bill. The provision specifically targets the construction industry by removing the small business exemption to the employer mandate penalties only for construction firms. Congress originally exempted all businesses that employ less than 50 employees from the employer mandate due to the complexity and costs associated with the mandates in the bill. The change would require small employers in the construction industry to comply with all the employer mandates once they have five employees and their payroll reaches $250,000.
It is important for you to use the tools on the AGC Legislative Action Center to write your elected officials or to call their offices in opposition to the Democrats' approach to reform. Call the Capitol Hill switchboard (202) 224-3121 and ask for your member of Congress, or send a letter by clicking here.
Reasons to Oppose Provision Targeting Construction Industry:
- Few senators were aware of the provision and the amendment was never open to debate.
- The amendment was pushed by a small employer group representing less than 4 percent of construction companies.
- The provision differs from other employee and payroll thresholds elsewhere in the bill, as well as other labor laws and regulations.
- The construction industry is currently experiencing the highest unemployment of any other industry, 27.4%, triple the national rate.
- The provision prohibits small construction companies from having the opportunity to take advantage of the small business exemption that companies in every other industry are eligible for.