

Florida fruit and vegetable growers, as well as others involved in
the state’s agriculture industry, are worried. Health care reform
being crafted by Congress contains some elements and omissions that
could mean financial and administrative nightmares for producers.
The problems fall into three key areas:
- The seasonal and temporary nature of work on farms
- Joint employment and joint liability for those who employ
farmworkers
- Economic consequences from farmer to consumer
The bill, HR 3200, requires any employer with a payroll of more than
$750,000 to provide health insurance for every employee, full- or
part-time. Those employers who do not provide coverage or cannot find
coverage must pay a penalty of up to 8 percent of payroll with a sliding
scale down to zero for payrolls of less than $500,000.
Employers who elect to provide coverage must pay a minimum of 72.5
percent of the premium for single coverage and 65 percent of the premium
for family coverage for full-time employees, and an as-yet-undetermined
prorated percentage for part-time employees.
Those provisions spell trouble for farmers because they treat
agricultural work as if it were office or factory employment. Nothing
could be further from the truth.
Seasonal and temporary nature of the work:
A major flaw in the bill is that it does not recognize the unique
realities of agricultural operations that require large numbers of
temporary and seasonal workers.
For example, how does an employer provide health coverage when some
seasonal planting and harvesting work may last for months and other jobs
may only last for a few weeks? In addition, many employees work for
several growers during the course of a season – who will be
responsible for their coverage? A grower with 300 jobs available may see
as many as five times that many workers in a season – what will
the administrative requirements be?
This challenge is not new to farmers. Responsible agricultural
employers have struggled for years to provide coverage for workers, but
the transient nature of the workforce has made it impossible for
insurers.
Joint employment and joint liability:
Farmers employ many workers on a short-term basis, a situation that
is further complicated because many growers work through farm labor
contractors who move their workers from farm to farm throughout the
season. The bill does not address how each party will divide the
responsibilities. Will labor contractors be able to live up to the
responsibilities this bill might impose or will they drop by the
wayside, meaning the farm labor pool would be greatly reduced?
Economic consequences:
Farmers walk a financial tightrope in a good year. Regulatory
pressures already are great, and they’ve always held their breath
when it comes to droughts, freezes and hurricanes. If farm labor
contractors end up passing the cost of insurance or penalties on to the
growers, how many will remain in business?
Further, how can a grower survive a penalty of up to 8 percent of
payroll because of the difficulties of insuring temporary workers?
The ultimate consequence could be the outsourcing of America's food
supply to other countries where food safety, environmental regulations
and labor practices are below U.S. standards.
We all need to act now.
Growers, industry members and consumers who look forward to
U.S.-grown fresh produce all have a responsibility to educate Congress
on the fallout should this health care legislation pass. Senators and
representatives are back in their home districts during summer recess
for a very short time.
Please contact your congressional representative to urge
consideration of agriculture’s special circumstances in any health
care reform legislation. FFVA has made it easy for its members with
our Grassroots Action
Center. At the bottom of the screen, click on the gray
"Take Action" button. You will be taken through a few short steps to be
provided with your representative’s district phone number and some
suggested points to make during your call.
What’s next?
The most recent action, passage of H.R. 3200 by the House Energy and
Commerce Committee, follows passage by two other House panels. During
the August recess, the three committee bills may be combined into a
single bill for the full House to consider.
Senate committees are still working on their versions of the
bill.
Before either the full House or Senate can vote on a bill, the
committee chairmen and other congressional leaders will have to hammer
out compromises in order to bring a single bill to the floor. Once the
House and Senate finalize each bill, they must then be reconciled again
in Conference Committee.
The Conference Committee would then bring a final bill to each
chamber that would have to be voted on and passed. If that happens, the
bill would go to the president who would sign it if he approved, and it
would become law.