Do You Double Pay for Your Health Care?

Can you imagine having to pay for your

health care benefits twice?

It’s hard enough to pay for them once, right?
What if your whole industry was required to pay for its healthcare
benefits twice?
What would you do if this was true for you?

This is exactly what is happening with the construction industry
here in California.

As we read earlier this month, AB 842 was introduced by the California
Legislature at the end of February 2015, and is due to be heard in
committee on May 06, 2015.  California-Legislature

According to an industry publication, AB 842 will waive “the requirement
to pay health care benefits twice.”

“Assembly Bill 842, by Assemblyman Jim Patterson, addresses the problem of construction contractors paying twice for healthcare. The bill, sponsored by the Associated Builders and Contractors, would ensure that employers’ Affordable Care Act ACA-compliant health plans are accepted by state government standards. Many construction companies provide ACA-compliant health insurance coverage with all of the ACA essential health benefits. However, there are situations in which contractors are mandated to pay for health insurance a second time. For example, contractors who work on public works projects that are covered by a project labor agreement (PLA), must pay into union trust funds for health insurance even though they already provide health insurance for their employees.

“Assemblyman Jim Patterson said, “We need to stop this expensive and unnecessary practice. 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.”

“An employer can expect to pay well over $5,000 dollars per employee under a group health policy, according to recent studies by the Kaiser Family Foundation and the National Small Business Assn. “Requiring a contractor to pay that amount twice for all employees dispatched to jobs with PLAs just doesn’t pencil out. For every 10 employees dispatched to a year-long job, he will pay at least $50,000 in duplicate health benefits. These dollars could be used to provide higher wages, create new jobs, or upgrade tools and equipment. Whether purchased individually or provided through an employer-paid group plan, healthcare coverage is likely the most expensive item in a family or a business budget, after rent or mortgage,” said James Fitzgerald, President of the Associated Builders and Contractors ABC of California.”

If you were a member of the California Legislature, would you vote
for or against this bill?

Please share your thoughts in the comments below and let’s have a
respectful conversation.

P.S. If you need help with your insurance coverage, or your insurance
business, please give us a call at 877.789.5831 and one of our experts
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