Health Care by Association

Ask lawn care and landscape contractors what their biggest business costs are and the two most common responses you’ll hear are “labor” and “health insurance.” Thankfully, Congress is planning to address two bills that could make the latter a less common answer.

According to an announcement made by the Professional Lawn Care Association of America (PLCAA), the U.S. House of Representatives is preparing to vote during the week of June 16 on H.R. 660, the Small Business Health Fairness Act, and the Senate will follow with a vote on its version of the act, S. 545. Together, the passage of these bills would establish association health plans (AHPs) under the Employee Retirment Income Security Act, which governs health benefits for large employers and unions. AHPs would allow small businesses to obtain health coverage through legitimate trade associations under federal rather than state law.

Both PLCAA and the Associated Landscape Contractors of America (ALCA), whose legislative efforts were recently combined, support H.R. 660/S. 545 and encourage their members to do the same.

“Everybody understands that heath care costs have been doubling,” noted Tom Delaney, vice president of government affairs, PLCAA, Marietta, Ga. “These huge premium increases have caused many lawn care and landscape companies who do offer health insurance to change the manner in which they offer it. They’ve increased deductibles, included fewer benefits or had employees pay more toward their own coverage.”

Delaney also pointed out that in 2002, 61 percent of all U.S. employers with three to 199 employees offered health insurance to their employees, compared with 65 percent in 2002. AHPs could spark a rebound, helping not only employees, but the industry and economy as well.

“One thing we know about our industry is that we have a lot of trouble finding and keeping employees, so one of the ways we can change that is by offering more benefits to come work in the industry,” Delaney reasoned. “With small businesses being able to get better health coverage through their associations, they’ll attract more employees, there will be more dollars in the economy and the companies will be able to grow. It’s got a multiplier effect.”

For contractors, AHPs could mean a savings of 15 to 30 percent on health insurance premiums as well as more health plan choices for their companies.

With votes on the bills coming up quickly, PLCAA and ALCA are encouraging their members to write letters to their representatives and senators, urging their support of H.R 660 and S. 545.

“Legislators tend to go with the majority of their constituents,” Delaney said, “so if the majority of people are pushing one bill or telling Congress to support it, they’re more likely to sponsor it.”

To streamline this effort, the associations have drafted and posted a sample letter on the PLCAA Web site that supporters can send to their representatives or use as a basis for their own letters. The letter is posted in the Legislative Action Center on the PLCAA Web site and supporters may mail, fax or email it to their representatives.

The author is Assistant Editor of Lawn & Landscape magazine and can be reached at lspiers@lawnandlandscape.com.