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Maryland Senate Approves Wal-Mart Health-Care Bill

Posted on: Thursday, 19 January 2006, 03:03 CST

By Kristen Wyatt

ANNAPOLIS, Md. Marylands Senate voted Thursday to enact a first- in-the-nation requirement that Wal-Mart Stores Inc. spend more on employee health care despite the governors veto of the legislation. The measure, touted as a money saver for the state-supported Medicaid program, now goes to the House for a vote. Labor unions have said they are seeking similar legislation this year in at least 30 states. The Democratic-controlled Senate voted 30-17 to overturn a veto of the so-called Wal-Mart bill last summer by Republican Gov. Robert Ehrlich. The measure now heads to the House, where the prospect of passing was less certain, though Democrats control that chamber as well. Supporters of the bill said Bentonville, Ark.- based Wal-Mart, the worlds biggest retailer, unfairly costs taxpayers money by spending less than 8 percent of payroll on health care. The bill requires all companies with more than 10,000 employees to spend that much or give the state the difference

. Currently, only Wal-Mart would meet the criteria in Maryland. Critics of the legislation called it a dangerous precedent that ultimately would cost Maryland jobs. A Wal-Mart executive called the bill a poorly worded mandate for a single company. Mia Masten, a director of corporate affairs, said Thursday that the bill could be the beginning of a slippery slope. We believe everyone should have access to affordable health insurance, although this legislation does nothing to accomplish that, said Masten, who said the retailer may partially pull out of Maryland if the bill becomes law. She said Wal-Mart was unfairly singled out because of partisan politics and that Medicaids problems go beyond the behavior of one company. The veto override has been one of the sessions most intensely lobbied, with business groups taking out print ads supporting a veto and labor groups rallying and taking out their own ads siding with supporters. The decision is being closely watched by labor unions and legislatures around the country. The unions contend that some large, profitable companies shift health insurance costs to workers, taxpayers and other businesses. They are proposing legislation, like the Maryland bill, that would require big employers to dedicate a percentage of their payroll to health care benefits. The unions have said the states they will focus on include Colorado, Connecticut and Washington. In the Senate debate, Democrats had harsh words for Wal- Mart. Dont dump your employees that you refuse to insure into our Medicaid system, said the bills sponsor, Sen. Gloria Lawlah. But Sen. Edward Pipkin, a Republican, warned that overriding the veto would nudge the state toward public health care. He said the threshold of 10,000 employees would eventually be ratcheted back. We are crossing a bridge that, once we cross, itll be very difficult to turn back, Pipkin said. The company is under legal pressures around the country. In Pennsylvania, a judge this week approved a class- action lawsuit by employees who say the company pressured them to work off the clock. Last month, a California jury awarded workers $172 million for illegally denied lunch breaks, and Wal-Mart settled a

Source: Charleston Gazette, The

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