BLUE SPRINGS, Mo. – Home builders say a last-minute change to the Senate health-care bill will hammer their industry because of a requirement to provide health coverage or pay penalties.
The change says construction companies should offer coverage if they have five or more employees and a payroll of $250,000 or more. Otherwise, they would face fines of up to $750 per employee per year if the employees receive tax credits. The threshold for other businesses is 50 employees.
Home builder Tom Woods, who has been in the industry more than four decades, said the timing is horrible, considering the prolonged housing slump.
In his
Stone Canyon subdivision in Blue Springs, the new homes are still outnumbered by vacant lots. Since 2007, his staff has shrunk from 32 employees down to five.
“It’s just irresponsible in my mind if not plain stupid,” Woods said of the provision. “To single out one industry and target that industry does not make sense and again, is just totally unfair.”
A sponsor of the bill said the goal is to level the playing field for companies who may have to bid against other construction firms not providing health-care coverage. The provision would also prevent small construction firms from being exempt, since most employ less than 20 workers.
“It’s very disappointing since I have been supporting of health-care reform,” said Dwayne Hodges, who owns Hodges Garages and employs eight employees, including several family members. “It’s not right to go ten times harder on me than other business owners.”
Sam Gromowsky has owned Almar Printing in Waldo for more than 40 years and provides coverage for his nine employees. He has mixed feelings about the mandate. In one respect, he feels all employers should offer health care for their employees.
“However, I just don’t think the government should be imposing it and I don’t think the government should be singling out one industry,” said Gromowsky.
At a time when the construction industry’s unemployment rate is nearly double the national average, builders say the requirement will force more people to close up shop.
“If this provision targeting the construction industry is enacted into law, many small builders in our community could be forced to shutter their doors, placing the housing industry on life support,” said George Schluter, the Interim Manager with the Home Builders Association of Greater Kansas City.
It is too late to remove the provision from the bill since the Senate is slated for a Christmas Eve vote.
Builder hope to get it removed before the final version is negotiated early next year between the House and Senate.
