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Help Fight for a Fair Health Care Reform Bill

December 14, 2009

Real health care reform should make union contractors and union workers more competitive with the nonunion sector. To make this happen, the IBEW and the Building and Construction Trades are asking union members to support an amendment to the health care reform bill in Congress.

Sponsored by Sen. Jeff Merkley (D-Ore.), the amendment to the Patient Protection and Affordable Coverage Act—the health care reform bill under debate in the Senate—would require employers in the construction industry with over $250,000 in annual payroll or more than five workers to provide health insurance for their companies or pay a penalty.

The amendment is necessary because H.R. 3590 exempts businesses with less than 50 workers from providing health insurance. Under this legislation, almost no construction companies would be required to provide health insurance, as 90 percent employ less than 20 workers.

President Edwin D. Hill urges all members to write or call your senators and members of Congress to support the Merkley amendment.

President Obama has repeatedly said that if you like your health insurance, you can keep it. But without the Merkley amendment, additional requirements placed on health insurance plans will force trustees to drop benefits in order to make union contractors competitive.

Below are talking points to include in your letters or conversations with elected representatives.

• The Merkley Amendment to the Patient Protection And Affordable Coverage Act (H.R. 3590) simply requires that employers in the construction industry with over $250,000 in payroll or more than five workers provide health insurance for their employees or pay a penalty.
• The Merkley Amendment is necessary because the Senate bill exempts businesses with less than 50 workers. Under H.R. 3590 almost no construction companies would be required to provide health insurance for their employees, as the industry is dominated by small contractors; 90% employ less than 20 workers. In electrical construction, 70% of contractors that belong to the National Electrical Contractors Association (NECA) employ 10 or fewer workers. Even at its threshold of five workers, the Merkley Amendment still exempts 65% of construction employers from having to provide health care.
• The Merkley Amendment is also necessary because construction is an extremely competitive, low-bid industry. As such, very few small non-union construction employers provide health insurance. Its one way they gain an advantage over union contractors.
• Health care costs for union contractors, who have provided health insurance through Taft-Hartley, multi-employer funds for years, are between 12.5 and 20% of payroll.
• H.R. 3590 adds to these costs by placing additional burdens on employers who provide health insurance for their workers. Both the House and Senate bills ban yearly and lifetime caps. Additional stop-loss insurance made necessary by these bans will cost Taft-Hartley plans between $40 and $120 per member monthly. The proposed legislation will also require plans to carry dependents to age 27. Together, these requirements will drive-up costs an additional $1,000 per member every year further tilting the playing field against construction employers who provide health insurance for their workers.
• Creating a stand-alone provision for construction is not unusual. Congress has recognized the construction industry as unique and many laws, including the National Labor Relations Act and Occupational Safety and Health Act acknowledge this. Both have special provisions for construction only.
• NECA and five other building trades’ business organizations support the Merkley Amendment. Collectively, they represent almost 30,000 small businesses in the United States.
• President Obama and supporters of health insurance reform have repeatedly said if you like your health insurance you can keep it. But without the Merkley Amendment the additional requirements placed on health insurance plans will force Taft-Hartley trustees to drop benefits it order to make union construction contractors competitive.