Nation's Building Material Dealers Seek Affordable Health Coverage

Release Date: 4/20/2005

Washington, DC]- The National Lumber and Building Material Dealers Association (NLBMDA) provided testimony to the Senate Committee on Small Business and Entrepreneurship today regarding affordable health care for small businesses. NLBMDA believes that an alternative to today's costly health care system must be found to ensure the success of America's small businesses, including the many small businesses in the lumber and building material industry.

The challenge of providing health care coverage, as costs continue to drastically increase, is a significant factor in the building material industry. A typical small dealer has an average profit margin of less than three percent. "Expenditures on health insurance are the single highest operating expense behind salaries and payroll taxes and have increased as a percentage of operating costs each of the past five years," stated NLBMDA President Shawn Conrad. "A company operating at such low profit margins acutely feels even a modest increase in the costs of health insurance," he continued.

Establishing an Association Health Plan would provide small businesses the option of banding together to purchase health care coverage through their trade association, giving small businesses access to the quality of coverage currently available to large corporations and labor unions.

NLBMDA's comment to the committee outlined the importance of Association Health Plans to both the building material industry and small business owners as a whole. Many owners face difficulties recruiting and retaining quality employees because of the benefits they provide. The increasing cost of health coverage has a direct effect on a business' profitability and long-term growth as well as the economic stability of the United States.

NLBMDA is encouraged by the recent attention the Senate has given to this legislation that will increase the viability of its members and other small businesses. In addition to the Small Business Committee hearing, the Senate Health, Education, Labor and Pensions Committee will conduct a hearing tomorrow on Association Health Plan legislation. NLBMDA commends Chairpersons Olympia Snowe (R-ME) and Mike Enzi (R-WY) for their strong leadership in ensuring that the Senate move forward to implement solutions for small business owners and their employees.

The National Lumber and Building Material Dealers Association represents more than 8,000 lumber and building material companies with over 500,000 employees, 20 state and regional associations and the industry's leading manufacturers and service providers.

NLBMDA's member companies are the suppliers of builders in every state across the U.S.