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Wal-Mart Target of Health Insurance Legislation

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




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