Health Care Law Continues to Create Uncertainty and Confusion

On the eve of the third anniversary of the Patient Protection and Affordable Care Act (PPACA), ABC March 22 issued a statement calling attention to how the health care law continues to create uncertainty and confusion in the construction industry, making it difficult for the nation’s contractors to plan for the future.

“ABC members have major concerns about how to implement the employer mandate provisions of the health care law,” said ABC Vice President of Government Affairs Geoff Burr. “The provisions are complex and confusing, and significant employer education is needed.”

Since the law’s passage, ABC, as part of a coalition, has submitted several sets of comments on the implementation of health care-related regulations, pointing out the interplay of the employer requirements under the law have significant consequences for employers’ ability to maintain flexible work options and affordable health coverage for their employees.

“Because the health care law forces employers to offer government-prescribed health insurance, ABC members will no longer have the choice or flexibility to structure health care coverage options that meet the needs of their fluctuating workforce,” Burr stated. “The resulting increased costs will jeopardize the ability of ABC member companies to maintain affordable coverage options for their employees and force some to drop coverage altogether.”

Burr also noted that taxes included in the health care law, such as the Medicare taxes on wages and investment, are another burden for ABC members. In combination with the 39.6 percent top bracket created by the American Taxpayer Relief Act, these surtaxes yield a 25 percent gap between the rates paid by smaller businesses and those enjoyed by the country’s largest corporations.

“Providing quality health care benefits is a top priority for ABC and its member companies,” Burr said. “ABC believes true reform should provide greater choice and affordability and allow private insurers to compete for business. Unfortunately, the health care law fails to lower costs while imposing new taxes, as well as costly and burdensome federal government mandates on the construction industry.”