If common ground exists between supporters and opponents of the controversial health care bill passed this month in Maryland and those already under discussion in other states, it's that something ought to be done about spiraling health care costs. And though they disagree strongly what that "something" ought to be, they admit the bill itself isn't quite enough.
In a statement denouncing the Maryland state legislature's override of a veto on the so-called "Fair Share Health Care" act, Wal-Mart noted the legislation "does nothing" to address a lack of affordable health care coverage for Marylanders. "There are 786,000 uninsured people in the state of Maryland and less than one-half of one percent work for Wal-Mart," the statement said.
And in supporting the bill, Barry Scher, vice president of public affairs, Giant Food, told SN the retailer did so in part because "there hasn't been any significant solutions to the [health care] problem at the federal or state levels."
"We felt that this would be an important step in Maryland," he said, "albeit a small one."
The bill, introduced more than a year ago in Maryland, was supported by labor unions and groups like Wal-Mart Watch, which said discussion on similar legislation is under way in as many as 31 states. Late last year, New York City passed a similar law, over objections of Mayor Michael Bloomberg.
The Maryland law requires companies with more than 10,000 employees - full- or part-time - to devote at least 8% of its payroll costs to employee health care or make up the difference to the state. According to published reports, only four employers in Maryland meet the 10,000-employee criteria - Wal-Mart, Giant, Johns Hopkins University and Northrop Grumman - and of them, only Wal-Mart failed to meet the 8% threshold.
During hearings on the bill, Wal-Mart testified it spends around 7% of its payroll on employee health care. The company employs around 16,000 workers in Maryland. Proponents estimate the new law would require Wal-Mart to pay the state around $12 million annually based on current conditions.
Giant, Landover, Md., employs around 15,000 in the state and devotes "more than 20%" of its payroll costs to health insurance for employees, Scher said.
"Aside from the impact of the bill on Wal-Mart, we strongly felt that any major business should have to pay their fair share of health care benefits to their employees so that other businesses, the state of Maryland, and the citizens of the state do not end up subsidizing health care cost," Scher said. "That has always been the premise for supporting the legislation.
"If the bill impacted General Motors, instead of Wal-Mart, we'd still be here, because any major employer should not let some employers, the citizens and the state subsidize health care costs," Scher said.
Giant was alone among retailers in the state who supported the bill. The Maryland Retailers Association, Annapolis, supported Gov. Robert Erlich's veto of the legislation, which Maryland lawmakers overturned earlier this month.
Tom Saquella, president of the organization, told SN he expected that Wal-Mart and other business groups may challenge the law in court, saying some feel the action violates the Employee Retirement Income Security Act, a federal law that prevents states from mandating specific benefits packages.
The Maryland Chamber of Commerce, Annapolis, opposed the bill in part because of ERISA. J. Joseph Curran Jr., Maryland's attorney general, disagreed, reports said.
The Maryland Retailers Association has not discussed what, if any, action it may take, Saquella said, though he agreed the law would have little effect in changing the affordability of health care in the state.
"Organized labor put out a hell of an effort, although if the bill stays the way it is, it will have almost no impact of health care affordability or recoveries in Maryland," he told SN. "It was purely a political battle between labor and big business, and Maryland was the pawn."
Last week, lawmakers in Wisconsin and West Virginia were discussing similar legislation. The West Virginia bill mirrors the Maryland measure in its requirements. Wal-Mart is the only company in the state meeting the criteria.
David S. Rogers, president of DSR Marketing, Deerfield, Ill., told SN the controversy arising from the battles may ultimately result in pressure to make real changes. "It's a broken system, and it results in U.S. companies getting less and less competitive every day," he said. "Politicians need to wake up and do something."
