On Christmas Eve, December 24, 2009, the Senate by a 60 to 39 vote approved the Patient Protection And Affordable Coverage Act (H.R. 3590). A large bill, as most have undoubtedly heard, was made a bit larger as language requiring small construction firms with more than five workers provide health care coverage or face stiff fines was, according to the National Association of Home Builders, "slipped into the Senate health care legislation at the last minute." That language, more commonly known as the Merkley amendment, 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.

According to Nation's Building News, the Builders' Association official online weekly, "NAHB has been alerting lawmakers that this requirement is patently unfair and dangerous for an economy that is only beginning to recover from financial collapse. It would place a huge competitive disadvantage on the housing industry, which under normal conditions accounts for more than 17 percent of the nation's gross domestic product but today continues to struggle for survival." NAHB also noted that small businesses in all other industries would be exempt from providing mandatory health coverage if they employ 50 workers or less.

The article also noted that the NAHB will continue to lobby hard against the language, seeking to have it stripped from the bill. The Association reported that it has reached out successfully to key leaders in both the House and Senate, earning favorable responses from Democrats in both the House and Senate. "As the process moves forward, NAHB will continue to push for the elimination of the Merkley language and seek other changes to address the concerns of the housing community and small businesses," the article noted.

Proponents of the Merkley Amendment, like the National Electrical Contractors Association (NECA), believe that adding the language to Patient Protection And Affordable Coverage Act 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 NECA employ 10 or fewer workers. Even at its threshold of five workers, the Merkley Amendment, NECA notes, still exempts 65% of construction employers from having to provide health care.

"We commend Senator Jeff Merkley (D-OR) for standing up to sponsor this amendment," said Lake Coulson, NECA executive director, government affairs. "Construction employers who fail to provide health care for their workers should not gain a competitive advantage." “I believe that all construction employers should accept providing health insurance for their workers as a basic responsibility," said Mel Buttrum, Owner, Service Electric Co., Snohomish (WA) "It is possible to run a profitable business while paying living wages and providing generous employee benefits. NECA members do it every day. I'm proud to be a member of an organization that recognizes the value of protecting our workers." A majority of NECA contractors are currently classified as small businesses, and they already provide health insurance for their employees. The exemption would have written into law a competitive advantage for construction employers who don't provide health insurance for their workers.

"The Merkley amendment is about fairness," said NECA CEO John M. Grau. "Without the Merkley amendment, too many construction employers would be exempt from providing health coverage for employees. NECA strongly supports the Merkley amendment, and we will continue to speak out on issues that will affect both contractors and employees."

Of course this could all be moot because we have been through health care freeform before, but at least you now have heard of the "Merkley Amendment."

[Note: NAHB encourages interested parties to contact Carlos Gutierrez at (800) 368-5242, ext. 8242. NECA is the voice of the $130 billion electrical construction industry, www.necanet.org.]

Published: February 3, 2010

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Peter L. Mosca is president and founder of BAK Communications, Inc. He has over 22 years of communications and media consulting experience, serving a variety of nonprofit organizations, including the CCIM Institute and the REALTOR Association on all three levels – national, state and local. He is the Spokesperson Trainer for the CCIM's Jay Levine Academy and trains hundreds of residential REALTORS nationwide to be effective industry spokespeople. He is consistently ranked as "excellent" by about 90% of those who attend his presentations. While his principal consulting focuses are public speaking and media relations development and content delivery and management, Peter is also the host of the Voice America Network's weekly radio program, "Income Property Investment Talk," a one-hour program that brings the powerhouses of commercial and residential real estate to property investors every Wednesday at 11 a.m. EST. Peter is married 17 years to his wife Barbara. They have two children: Ashley, 15 and Kelli, 12. Hence, the name BAK Communications, Inc.