The U.S. Senate Finance Committee will soon consider a health care reform bill that is likely to include an employer mandate. It is vitally important that any such provision take into account the unique needs of temporary/contractor staffing firms.
The Finance Committee bill likely will require employers that don't provide health insurance to pay an annual fee per employee. To ensure that they are not charged more than their fair share of any fee, employers of temporary, part-time, and seasonal employees?who work sporadically and whose hours fluctuate?must be allowed to prorate any such fee based on the actual hours worked by the employee.
MAPS also believes that employees should meet minimum work requirements before the employer is charged a fee. We're urging Congress to require employees to work at least 90 days, and satisfy a minimum weekly hours test, before a payment is imposed.
Sen. Kerry (D-MA) is a key member of the Finance Committee and therefore we are asking all MAPS members and affiliates to write to the senator (and your own congressional delegation) immediately to make him aware of the need for an hours-based approach to prorating any employer fees. Please click http://kerry.senate.gov/contact/email.cfm, select "health care" in the topic field.
Below is a sample letter explaining the implications the current bill will have on employers. Please feel free to edit this letter you see fit.
Regards,
Mark T. Carlson
President
Dear Senator Kerry,
I am an employer of a staffing company in MA and I know first hand the issues with the Fair Share Health Insurance Law and the impact it has on my industry. This state imposes fines to companies who do not offer insurance to employees. Beyond that, fines are imposed when we who have provided medical insurance even before the law was finalized are unable to meet the required 25% rule. This rule requires companies to have 25% of their full time workers covered by their insurance plan or face fines. The fines are imposed on companies like mine who have 75-80% of full time employees covered in approved plans (spousal coverage, Medicare, individual health plans, and my company plan). Additionally, fines are imposed using the full time equivalent formula which includes not only covered full time workers, but also part time workers who are not eligible. Imagine the challenge in this or any economy when a low margin industry is forced to offer health insurance, pay 50% of the premium (MA has no insurance carrier who allows employers to pay less than 50%), and pay huge fines based on people who are not eligible and are already covered. You got it; we have to cancel our insurance.
As your Finance Committee struggles with the overburdened health costs now, what will you do when the currently insured soon become uninsured and add to that cost? How will the government fare with the loss of revenues as small businesses close their doors due to the prohibitive cost of tax increases? I’m sure by now you have read countless letters from other MA staffing firms quoting the numbers of employed by our industry in this state, over 215,000. We are one of the largest employer industries in the country, many of whom are small firms.
When you consider the other large employer-based industries, such as restaurant, hotel, and retail, employer-based fines will have the same impact. Another point you might consider when imposing fines in this capacity is whether or not the part time worker has medical coverage. Is there a spousal coverage; is this a second job for a worker already covered? MA will be the first state to experience what employer fines will do to increase the numbers of uninsured. But, perhaps that is the point exactly. Perhaps the government sees an avenue for more revenue and this has nothing whatsoever to do with insuring the public. As I mentioned at the beginning of my letter, nearly 80% of my full time workers are insured.
Senator, I do not believe that government belongs in the healthcare business. I do not believe that we have enough man-power to develop effective regulations and then staff the over-sight for all of this. I believe that this is government at its worse. I urge you to open this discussion within your committee and examine what happens after the Congress of these United States passes this law. Who then becomes the victim, Senator? It is the hard working small business owner and their employees who invest in the American dream only to loose everything to big government? I certainly hope our elected officials will consider our contributions to this country.
I greatly appreciate your help.
Sincerely,
