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ASA Advises Contractors on ‘Obamacare’

Friday, May 17, 2013

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Subcontractors who must soon navigate the complex dictates of the new federal health-care law have a new guide from the American Subcontractors Association.

The Patient Protection and Affordable Care Act—known to fans and foes alike as "Obamacare"—will add another layer of federal compliance mandates to contractors and subcontractors who work on prevailing-wage jobs, ASA advises in a new article on the topic.

"What Does the Affordable Care Act Mean for Subcontractors?" in the new issue of The Contractor's Compass, the ASA's magazine, lays out a clear overview of the law, with compliance specifics and deadlines.


A federal government website aims to help employers and employees navigate the new health care law.

"Whether you call it health care reform or ACA, the Patient Protection and Affordable Care Act, it is here to stay—and for government contractors, the time to act is now," the association advises.

Who is Affected

For contractors and subs who are wondering if the act applies to their company, "[t]he short answer is 'Yes,'" advises author Adam Bonsky, executive vice president of government markets for Fringe Benefit Group.

"Employers with 50 or more full-time equivalent employees are required to provide health insurance for their workers or face fines, which can range from $2,0000 to $3,000 per employee, beginning in 2014," Bonsky writes. "Some analysts predict that these fines may increase in the future."

The law also affects smaller companies, Bonsky notes. The article offers a timeline for compliance, beginning right now, when employers are advised to start doing some serious homework.

Health care act

"Whether you call it health care reform or ACA, the Patient Protection and Affordable Care Act, it is here to stay—and for government contractors, the time to act is now," the American Subcontractors Association advises.

The full article is available here.

Webinar, More Information

ASA will also present a free webinar from noon to 1 p.m. ET Wednesday (May 22) on the new law, as it applies to contractors and subcontractors. "Health Care Reform and the Government Contractor: Now What?" will discuss compliance details, penalties for non-compliance, and more.

Learn more at

The federal government also has a website dedicated to general terms of the new law. includes the law's full text, an explanation of key features, and an implementation timeline.

In addition, the Department of Health and Human Services is also offering free, general webinars on the law next week. "The Health Care 101," with an overview of the law's main provisions, will be offered at 3 p.m. ET Tuesday (May 21) in Spanish and 2 p.m. Thursday (May 23) in English.


Tagged categories: American Subcontractors Association (ASA); Business operations; Enforcement; Government contracts; President Obama; Subcontractors

Comment from Lindsay Brown, (5/17/2013, 6:44 AM)

So we're talking about hard working Americans being able to access health care thru their employer or employer group, what a novel idea. Sounds good to me. Why wouldn't employers want a health workforce? With the abuses of "worker misclassification" (1099's or sub contracting) some unsavory contractors not only skirt laws that define federal, state, social security, disability, worker compensation and unemployment insurance. With these folks not paying their fare share it is up to the legitimate contractor and other faithful taxpayers to pick up the tab.

Comment from Michael Voudouris, (5/17/2013, 8:25 AM)

Finally, after being recognized by OSHA with an OIS code designation "Tempworkers", why can't ASA organize and offer a discounted, group insurance? Thank you.

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