Employers forced to pay twice for healthcare seek solution in Sacramento

SACRAMENTO, Calif., May 5, 2015 /PRNewswire-USNewswire/ -- Assembly Bill 842, by Assemblyman Jim Patterson, addresses a loophole that mandates construction companies paying twice for healthcare on public works projects.  On May 6^th 2015, the Assembly Labor and Employment Committee will hear testimony by the Associated Builders and Contractors and employers in California. The bill will ensure that Affordable Care Act (ACA)-compliant health plans provided by employers are accepted by State Government Standards.

There are situations where contractors are mandated to pay for health insurance a second time. For example, contractors who work on public works projects covered by a project labor agreement (PLA) must pay into union trust funds for health insurance regardless of the fact that they already provide health insurance for their employees.

"We need to stop this expensive and unnecessary practice," said Assemblyman Jim Patterson. "My bill is simple.  AB 842 lets the contractor show proof he has ACA-compliant health insurance coverage for his employees. A plan that has the required ACA benefits should be sufficient. Companies should not be forced to pay a second time into a separate health plan."  

Recent studies by the Kaiser Family Foundation and National Small Business Association reveal that the annual cost for healthcare can be well over $6,000 per employee.  For contractors working on a construction for a year with ten employees can expect to pay at least $60,000 in duplicate health benefits.  These dollars could be used to provide higher wages, create new jobs, or upgrade tools and equipment.

ABC of California is an association representing the various ABC training and workforce development centers in California.  Each ABC chapter operates a workforce development training center that educates the construction workforce of tomorrow. Our employer members are united in achieving the goal of a skilled and safe construction workforce in California.

CONTACT: Russell Johnson, 1-661-2031838, [email protected]

SOURCE Associated Builders and Contractors of California