Wal-Mart Target of Health Insurance Legislation

Wal-Mart Stores Inc., the nation's and world'sRep. Susan Bucher, D-Lantana, has filed a version
largest retailer, is quickly becoming Florida's largestof the health care proposal for the spring
retailer. The chain opened 50 of its 24-hourlegislative session. It closely resembles the
Supercenters throughout the state during 2002Maryland measure. Of Wal-Mart's costs to
and 2003, and there are nine Wal-Mart stores intaxpayers she says "It might be tempting to
Pinellas County- two Sam's Clubs, threedismiss this issue as a larger one of corporate
Supercenters and four regular Wal-Marts.It is alsowelfare, or to argue that we're singling out
among the state's largest private employers, withWal-Mart unfairly. But facts are facts: Wal-Mart
77,850 employees-far more than the 54,000does not just shift health-care costs onto
employed at Walt Disney World. According totaxpayers, it does so at a level well beyond that
Wal-Mart's media relations hotline, there are 3,407of any other employer."This legislation, if enacted,
people employed by Wal-Mart in Pinellaswould apply to private employers with 10,000 or
County.With these large employee rosters comemore employees. These companies would be
high costs. Wages, overtime, benefits, taxes andrequired to spend at least 8% of total payroll on
other expenses make staffing and its relatedemployee health care or pay the difference into a
costs the biggest expense for almost allstate-administered fund created to assist the
employers. When a company is big enough touninsured.Legislation like this is a direct response to
employ tens of thousands of people, methods forthe numbers of people on Medicaid. In Florida
cutting costs are an issue management visitsalone, an estimated 12,300 of Wal-Mart's 91,000
daily.Often management reduces employeeemployees relied on Medicaid for health care
benefits-namely health insurance-as a way tocoverage in 2004. Wal- Mart's position is that it
keep costs down, and until recently this practicehas more employees on Medicaid simply because
was met with little resistance. But this monthit is the state's largest employer.Clearly alarmed
legislative action in both Maryland and Pennsylvaniaby these legislative actions, Wal-Mart has lowered
took exception to this practice. And lawmakers inits monthly health insurance premiums-some as
28 other states, including Florida, Connecticut,low as $11 a month-so that more entry level
Kansas, Colorado and Tennessee, are preparing toemployees can afford its company health care
introduce similar legislation. The face of costinsurance.Wal-Mart executives are denouncing the
savings at the biggest employers-and specificallycampaign, saying the company provides health
Wal-Mart-may never be the same.On Jan. 12 theinsurance to nearly half of its employees. Sarah
Maryland Senate voted to override a governorClark, Wal-Mart Spokesperson, says "More than
veto of a bill requiring companies with more thanthree-fourths of Wal-Mart associates have health
10,000 employees to pay for some health-careinsurance."She also commented on the general
benefits. Dubbed the "Wal-Mart Bill," the legislationstate of American health care by saying "The
is aimed squarely at the retail giant. It is alreadyAmerican people know that catering to the special
having a negative effect, as Wal-Mart's sharesinterests does nothing to help the 46 million
had their biggest decline in a month, closing loweruninsured individuals in this country. Now is the
by 83 cents, soon after the vote.Spurred intotime for legislators across the country to work
action by the AFL-CIO, which represent over ninetogether to find real solutions to the health care
million workers, states are beginning to recognizechallenges facing every state, every business and
that healthcare costs must be paid by someone.every working family."Mandy Minor is the
And if it's not employers, the burden often fallsCo-founder and Senior Marketing Consultant for J.
on the state. "The bottom line is that our healthAllan Writing and Design Studios. A member of
care system is broken-but it didn't just split open.the American Advertising Federation, Mandy is the
Big companies like Wal-Mart are pulling it apart andAchievements Chair of Ad 2 Tampa Bay and a
profiting at taxpayers' expense," says Johnstaff writer for the Tampa Bay Sun.
Sweeney, president of the AFL- CIO.Florida state