However, those crafting the bills have acknowledged that many small businesses are unable
to afford a group health insurance plan for their workforce. Many of these
businesses do not currently provide insurance. Therefore, businesses with under
50 employees are exempt from the $750 excise tax. This tax would otherwise be
levied on a per-employee basis, if any full-time worker who used a federal
subsidy to buy a health insurance plan. Right before the Senate version
passed Billy
Price Jersey , a new exception was added into the mix.
Oregon Democrat Jeff Merkley proposed an addition to protect construction workers. In
the construction industry, the majority of firms are smaller than the general
threshold: 90 percent of them employ fewer than 20 people. Merkley's provision
limits the exemption for the industry to businesses with under five employees.
Contractors who use union labor, regardless of their size, must often spend
anywhere from 12.5% to 20% of payroll on a health insurance plan for their
workers. Meanwhile, non-union contractors have the option of forgoing health
insurance--this allows them to low-ball
bids Dre
Kirkpatrick Jersey , which supporters of the exception claim will result
in an unfair competitive advantage. Employees with the latter firms would have
gone uninsured in the past, whereas now the federal government would pick up the
tab for subsidizing their health care.
Tradespeople employed by contractors risk their health at a higher rate than typical office workers in
other industries. Workplace injuries are more common for plumbers, electricians,
construction workers,
roofers Vontaze
Burfict Jersey , carpenters, and those in similar professions. While
workman's compensation insurance is a legal requirement for these firms, it
often does not cover the complete expense associated with overuse injuries and
other health problems not directly associated with an on-the-job injury. A
quality health insurance plan may make them more effective employees in the long
run.
Of course, some associations representing the building trades, including the U.S. Chamber of Commerce and the National Association of Home
Builders Carlos
Dunlap Jersey , are unhappy with the last minute insertion. They believe
that the mandate will result in tens of thousands of jobs lost, at a time when
the unemployment rate is over 10 percent. Although small businesses will be able
to take advantage of two years' tax credits for buying a health insurance plan,
trade associations believe that the credits will be insufficient. Republican
Senators are also opposed to what they feel is a high amount of "pork", or
sweetheart deals for certain districts in exchange for votes. The Merkeley
provision was, in
fact Tyler
Eifert Jersey , one of those 11th-hour deals struck by Majority Leader
Harry Reid.
The House rejected a similar proposal during its own negotiations last fall. With a smaller majority, the Senate needed to shore up
union lobbyist support. That constituency is increasingly concerned with the
impact health care reform will have on their existing plans: by extending the
length of time insurers must allow adult children to remain on a health
insurance plan, as well as eliminating lifetime and annual limits on coverage,
their costs will increase significantly. Labor unions also oppose the tax that
the Senate plans to impose on the generous "Cadillac" insurance plans more
prevalent among union workers. Democrats claim that such a tax is necessary in
order to pay for part of the cost of healthcare reform. It remains to be seen if
construction workers remain a special case when both chambers of Congress are
finished combining their respective bills.
Author's Resource Box
Yamileth Medina is an up and coming expert on Health Insurance and Healthcare Reform. She aims to help people realize that they can find a quality health
insurance plan right now. Yamileth lives in Miami, FL.
Article Source:
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