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Senate Health Care Bill a Threat to Home Building Industry
A last-minute provision in the Senate health care bill targeting the construction industry is certain to derail the fragile housing recovery and threaten the solvency of countless small home building firms.
The provision unfairly targets small construction industry firms by requiring them to provide health insurance if they employ more than five workers — the same mandate required for big businesses. Meanwhile, all other small businesses — with the exception of the construction industry — would be exempt from providing mandatory health coverage if they employ 50 workers or less.
"This narrow provision is an unprecedented assault on the construction industry and unjustly targets an industry trying to keep its doors open during the worst housing downturn since the Great Depression," said NAHB Chairman Joe Robson.
"If this provision were to be enacted into law, it would prove to be catastrophic for the home building industry," Robson said. "In short, this is a true jobs killer. Thousands of small builder firms struggling to stay afloat could go under. We strongly urge the Senate to reconsider and pull this onerous provision that threatens the viability of small home builders across the nation."
Overcoming a procedural hurdle, early in the morning of Dec. 21 the Senate secured the 60 Democratic votes necessary to overcome a Republican-led filibuster, setting the stage for a final up or down vote on the healthcare legislation on Christmas Eve at 7:00 p.m.
The revised bill unveiled by Senate Majority Leader Harry Reid (D-Nev.) on Dec. 20 made concessions on several issues to secure the votes needed to move forward.
The 383-page "manager's amendment" will cost an estimated $871 billion over 10 years, according to the Congressional Budget Office. It also estimates that the measure will reduce the deficit by $132 billion over the next 10 years and provide healthcare to 31 million Americans who are currently uninsured.
A major breakthrough came on Saturday morning when Sen. Ben Nelson of Nebraska, the only Democratic member opposed to the bill, affirmed his support after compromise language was reached to limit federal funding for abortions. The manager's amendment also features an expansion of health care affordability tax credits for small businesses, increases access to workplace wellness programs and clarifies the definition of full-time employers.
The amendment, unfortunately, did not address several of the concerns expressed by NAHB along with the Small Business Coalition for Affordable Healthcare in a letter in opposition to H.R. 3590.
Sent to every senator on Dec. 10, the letter notes that the reform measures in the legislation "fall short of long-term meaningful relief for small business. Any potential savings from those reforms are more than outweighed by the new taxes, new mandates and expensive new government programs included in the bill."
Specifically, NAHB and other members of the small business coalition cited opposition to several components of the bill:
- An employer mandate that encourages job cuts, not job creation
- A small business health insurance tax
- New paperwork burdens and costs for small businesses
- No meaningful liability reform
- An unprecedented increase in the Medicare tax
- Health insurance exchange plans that lack affordable choices
If Reid is able to muster the 60 votes to move forward by Christmas, this would allow a House-Senate conference to deliberate over the differences between their respective bills during the next few weeks. The measure would then move to a final vote in each chamber (requiring only a simple Senate majority) that would allow President Obama to sign legislation into law before the State of the Union address in late January.
NAHB continues to monitor the latest developments and is working closely with several members of the Senate to address the small business exemption issue. To view the legislation, click here and type H.R. 3590 in the box at the center of the screen.
For more information, e-mail Carlos Gutierrez at NAHB, or call him at 800-368-5242 x8242.
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