Newsline

Survey Says Contractor Health Insurance Premiums Up Sharply

July 25, 2002
/ Print / Reprints /
ShareMore
/ Text Size+
ARLINGTON, VA — According to preliminary results from a nationwide survey of nearly 300 contracting companies conducted by the Air Conditioning Contractors of America (ACCA), health insurance premiums paid by HVACR contractors have grown an average of 61% from 1999 to 2002.

At the same time, average employment by responding contractors over the last three years has remained flat, and 64% of respondents have reduced benefits to employees since 1999. Another 16% of respondents indicated that they intend to reduce benefits in 2003.

Premiums have increased in all regions of the country, although the areas that appear to have been hardest hit are the Southwest, Pacific Northwest, and Mid-Atlantic.

Contractors also reported that they will spend 7.1% of their total operating expenses on health insurance premiums in 2002, an increase over the past two years of 18%.

“There is a health insurance crisis for small employers in the United States that must be addressed,” said Paul T. Stalknecht, president and CEO of ACCA. “Unlike Fortune 500 companies, community-based businesses, like HVACR contractors, are prohibited from pooling together nationwide to help reduce their insurance costs.

“If Congress were to give these small employers access to association health plans, these employers would be able to lower their costs per employee. On average, large employers spend $1,000 less per employee on health insurance than small employers. This is a situation that is bad for working families and bad for communities. Association health plans will go a long way toward making the situation better.”

Publication date: 07/29/2002

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by Greg Mazurkiewicz

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 World Energy Engineering Congress

Scenes from the 2014 World Energy Engineering Congress in Washington, D.C.

Podcasts

NEWSMakers: Andy Heinze

Andy Heinze, distribution channel development manager, Sporlan Division of Parker Hannifin, discusses Sporlan's new refrigeration system training center. Posted Dec. 11.

More Podcasts

ACHRNEWS

NEWS 12-15-14 cover

2014 December 15

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

HVAC TECHNICIAN SHORTAGE

In order to bring more people into the trade and produce more technicians, what should the industry do?
View Results Poll Archive

HVACR INDUSTRY STORE

2015.jpg
2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con