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Less expensive health insurance a priority with construction industry

February 16, 2005 |

Affordable health care in the form of association health plans has become a top priority for the construction industry, according to the Associated Builders and Contractors organization.

ABC, which represents 23,000 construction firms nationwide, touts AHP legislation as the solution to an often-confusing maze of individual state regulations and rising costs brought about by insurance company consolidation.

Joe Rossman, vice president of fringe benefits for ABC, said large insurance companies are lobbying against AHP legislation – formally titled the Small Business Health Fairness Act – because it threatens competition in a marketplace without options.

Rossman said the reduction of insurance carriers due to a flurry of buyouts during the past few years has not led to lower rates for contractors.

“The results just aren’t true,” he said. “It’s [insurance] a take-it or leave-it issue.”

ABC, in addition to related industry groups like the Associated General Contractors of America, has been part of the push for Congress’s pending approval of the Small Business Health Fairness Act, which could give small construction company owners more affordable health care for employees.

The legislation was introduced in the U.S House of Representatives and would allow small businesses to join together nationwide through federally certified association health plans.

“It [AHPs] gives you an entity negotiating for the small employer,” Rossman said.