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Could the Senate Health Bill Bankrupt Small Home Builders and Construction Companies?

By
Real Estate Agent with Future Home Realty

There was a last minute provision inserted in the Senate Health Bill that could hurt the fragile housing and construction industry, but specifically the smaller family type businesses.

All small businesses are exempt from having to buy health insurance for their employees as long as they have less than 50 employees, except for the construction industry which will have to provide health insurance if they employ more than five people. In the case of the construction industry these are the same standards that big businesses are going to be held to.

Although there are many big home builder and construction companies that already provide health insurance there are also some very small businesses especially new companies that have few employees and are on a shoestring budget. The health reform bill would likely put many of the smaller employers out of business.

Think of the small companies such as painters, electricians, plumbers, roofers, siding companies, framers, gutter installers and more. Of course we all know the big home builder names; but there are many builders with just a few employees who build one home at a time. Many of these reach the five employee threshold as they try to grow their company and more business rolls in. Many of these companies may have a choice between going bankrupt or choosing to never grow beyond four employees. Or it could cause the unintended consequence of small construction companies using more illegal's instead of American workers.

We have first-time and existing home owner tax credits the government is using to artificially spike home sales in Tampa and throughout the country, which of course helps the housing industry. With the government however, it seems one hand giveth, while the other taketh away.

Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

I wonder why this exemption was added/ I will have to go back in and look at this to see what is going on as this makes little sense

Dec 22, 2009 11:44 PM
Jeff Launiere
Future Home Realty - Tampa, FL
Jeff Launiere

My guess is that is what put in as a result of the discussions about safety and trades are considered dangerous. Falling off a roof could definitely endanger your health. I believe it is likely the same reason they made an exemption for the Cadillac Health Plans tax for Longshoremen, police, fire and many unions but not for others. The reasons they give often make little sense, but Congress can do whatever they want.

Dec 22, 2009 11:50 PM