Md. forces Wal-Mart to spend more on health

AP via MSNBC ^ | 1/13/06

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Legislature overrides veto; unions seek similar laws in 30 more states

ANNAPOLIS, Md. - Maryland legislators voted Thursday to enact a first-in-the-nation requirement that Wal-Mart Stores Inc. spend more on employee health care. The measure, touted as a money-saver for the state-supported Medicaid program, takes effect despite the governor’s veto of the bill.

Labor unions have said they are seeking similar legislation this year in at least 30 other states. Supporters say the retailing giant unfairly takes advantage of taxpayer-funded health care plans because some workers can’t afford Wal-Mart’s health insurance.

“The taxpayers are giving a health-care subsidy to the largest retailer on earth,” argued Democratic Delegate Kumar Barve. The House and Senate, both controlled by Democrats, both notched the three-fifths margins needed to override a veto last May by Republican Gov. Robert Ehrlich.

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By overriding Governor Ehrlich's veto, liberals in the Maryland House joined the same in the Senate who voted yesterday. The Democrats have ensured that people in Maryland who shop at Wal*Mart will pay higher prices. The RATS say they are standing up for the "little guy", but they are making life harder for working people. Using Wal*Mart to suck money out of average Marylanders is disgraceful.

[Gay State Conservative]

I wonder if this can be challenged in the Federal courts on the basis that the legislature passed a law that pertains to a single corporation.

I seem to recall that doing that kind of thing violates the US Constitution.

[Onelifetogive]

Other than minimum wage, how do they keep Wal-Mart from substituting healthcare for regular wages?

[SJSAMPLE]

I think the correct title should be:
"Maryland forces Wal-Mart to cut wages and jobs"

[lesser_satan]

So they passed a law applying to only one party? If this doesn't get struck down within the next month, I'll be surprised.

[american spirit]

Why in the world do you think Md. taxpayers (as well as other states) should have to support the workers from one of the richest companies in this country?

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I wonder if this can be challenged in the Federal courts

Wal-Mart Weighs Legal Challenge to Md. Law

Looks like Wal-Mart is wondering the same thing.

[hophead]

Wal Mart should just split into 2 separate entities and be done with it. These a@@holes in Annapolis will in the next few years decide that companies with 8000 employees are subject to the same crap. Then 8% will not be enough, 9% or 10% will be the threshold.

[MarkeyD]

Supporters say the retailing giant unfairly takes advantage of taxpayer-funded health care plans because some workers can’t afford Wal-Mart’s health insurance.

You hear this all the time, but I have never seen any facts to back it up.

[keat]

I wonder if this can be challenged in the Federal courts on the basis that the legislature passed a law that pertains to a single corporation.

Thier backhanded trick was to draft the law to apply to private employers with more than 10,000 employees in the state. Wal-Mart is the only one in MD that qualifies.

Wal-Mart should take a page from Ayn Rand and pull out of the state.

[Jim Verdolini]

What they should do is mothball their stores very publicly in a few key locations and advise the state that they will reopen when the state gets out of the retail sales business.

[Mike Darancette]

Let's see what the unintended consequences of this move are.

[lesser_satan]

I'm not sure if equal protection applies to non-individuals. If it does, it can definitely be challenged federally, as equal protection was always intended to apply to the states as well as congress. If I remember correctly, the 14th amendment was the basis for incorporation doctrine.

[Eagles Talon IV]

"Wal-Mart should take a page from Ayn Rand and pull out of the state."

Agreed, the resulting loss of jobs and the lack of affordable merchandise for the people to purchase will drive more then a few pols from office in Maryland.-

[sockmonkey]

So, do Kmart & Sears count as separate stores in MD, although they are the same company, thus being unaffected by this law?

[Wally_Kalbacken]

No - I think the headline should read - MD forces Wal-Mart to outsource staffing in units of 9,999. If they are not the employer, but some temp agency - like WMCo1, Inc. and WMCo2, Inc. are, and are each less than 10k in total employment - MD can pound sand.

[OldBullrider]

Since when is it the responsibilty of business to provide health care benefits (the word benefit is now an oxymoron). I always was of the opinion that if you wanted to work it is your responsibility to take care of your health, not your employer, with the exception of work related accidents. Workers Compensation is more expensive than regular health care payments and the most abused form of heath care. If you don't like Wal-Mart don't work there or spend your money there it is as simple as that. Maryland in it's PROGRESSIVENESS is turning into a communist state with acts of the Legislature. Maryland needs to kick the freeloaders out of the system, then they could provide for the truly needy. But now I would be considered racist and homophobic from the last statement.

[conservativecorner]

BENTONVILLE, Ark., Jan. 12 /PRNewswire-FirstCall/ -- The following was
released today by Wal-Mart Stores, Inc. (NYSE: WMT):

"We believe that everyone should have access to affordable health
insurance. This legislation does nothing to accomplish that goal.
"There are 786,000 uninsured people in the state of Maryland and less than
one-half of one percent work for Wal-Mart. Clearly, the legislators who voted
for this bill have let down hundreds of thousands of Marylanders in need.
"More than three-fourths of Wal-Mart associates have health insurance.
And every Wal-Mart associate in Maryland -- both full-time and part-time --
can become eligible for health coverage that costs as little as $23 per month.
"This vote was never about health care. This was about partisan politics
in the Maryland gubernatorial race. In allowing a bad bill to become a bad
law, the General Assembly took a giant step backward and placed the special
interests of Washington, D.C. union leaders ahead of the well-being of the
people they serve. And that's wrong.
"The American people know that catering to the special interests does
nothing to help the 46 million uninsured individuals in this country. Now is
the time for legislators across the country to work together to find real
solutions to the health care challenges facing every state, every business and
every working family.
"It's time for Washington, D.C. union leaders to stop their attacks, and
let working families decide where to shop and work," Sarah Clark,
Wal-Mart Spokesperson.

About Wal-Mart Stores
Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood
Markets and SAM'S CLUB locations in the United States. The company also
operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador,
Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South
Korea and the United Kingdom. The company's securities are listed on the New
York and Pacific stock exchanges under the symbol WMT. More information about
Wal-Mart can be found by visiting http://www.walmartfacts.com . Online
merchandise sales are available at http://www.walmart.com .



Quick Facts about Wal-Mart Health Care

* More than three-fourths of Wal-Mart associates nationwide have health
insurance -- either through a company plan, a spouse's plan or
Medicare.

* Unlike the employees of many of our retail competitors, every Wal-Mart
associate -- both full-time and part-time -- can become eligible for
health coverage.

* Anywhere in the country, including Maryland, every eligible associate
has access to individual coverage for no more than $23 per month and
50 cents more per day for children. Family coverage starts at
$65 per month.

* In some markets across the nation, individual health coverage is
available through a new Value Plan for as low as $11 per month and just
30 cents more per day for children.

* A 2004 survey of hourly associates showed that 30% had no health
coverage before coming to work for Wal-Mart.

* After one year, there's no lifetime maximum on health care expenses for
any Wal-Mart plan in Maryland or anywhere in America, which protects
associates and their families from catastrophic financial loss.

[Chairman Fred]

It's called a "Bill of Attainder" and is specifically forbidden in the Constitution.

[taxesareforever]

It would serve other states notice if Walmart pulled up stakes and moved out of the state. Think the state would be crying the blues? I certainly think so.

[Bob J]

"Why in the world do you think Md. taxpayers (as well as other states) should have to support the workers from one of the richest companies in this country?"

Why in the world do you think it's a companies legal obligation to provide health care to it's employees at all?

[peyton randolph]

Wal Mart should just split into 2 separate entities and be done with it.

Although I'd like to see Wal-Mart take this on in court, splitting is done all of the time to protect corporations. Insurance companies, for example, usually have a separate entity in New York because that state is such a POS when it comes to doing business.

[ncpatriot]

The measure, touted as a money-saver for the state-supported Medicaid program

I thought only disabled people could get Medicaid. So how does this help the State?

[Restorer]

Anybody know how Wal-Mart's health insurance coverage rates stack up against other large discount retailers such as Kmart and Target? I never hear this discussed, but it would seem to be a logical element of the controversy.

[winner3000]

The title of the story is all wrong. Maryland is forcing Walmart to fire enough employees to get below 10,000.

[centurion316]

This has nothing to do with health care. The Democrat Party are acting as the lackeys of the unions and waging an all out war with Wal-Mart because they keep the unions out.

My family were originally from Bentonville. We know many Wal-Mart millionaires. One fellow was the handyman at Sam's store on the Bentonville Square. Mr. Sam told him to buy Wal-Mart stock with part of his retirement check every month. He did. Multimillionaire.

[calex59]

This is not right, I don't care who it makes life easier for.

Why don't we just pass laws that require ALL businesses, large or small, to pay for everyone's health care, that way we wouldn't have to tax people for government mandated health care/ Sar.

[Extremely Extreme Extremist]

Why in the world do you think Md. taxpayers (as well as other states) should have to support the workers from one of the richest companies in this country?

Don't hate the playa, hate the game.

Maybe if there wasn't Medicaid to begin with Wal-Mart employees would buy the company insurance. Wal-Mart is just doing what any other corporation would do. As long as there's Medicaid, what's the big deal if workers use it?

[willyd]

Why in the world do you think it is the job of either the federal government or Walmart to provide health care for anyone?

[Extremely Extreme Extremist]

Wal-Mart should take a page from Ayn Rand and pull out of the state.

Yep, and take the sales tax revenues with them.

I'm so sick and tired of state bureaucrats bad-mouthing Wal-Mart but have no problem pocketing all those juicy sales taxes that funds basic public services - INCLUDING MEDICAID!!!

[armydoc]

Why in the world do you think Md. taxpayers (as well as other states) should have to support the workers from one of the richest companies in this country?

You said it! It's a travesty! Did you know that WM workers are also expected to cover their own housing, food, and transportation costs? A rich company like WM certainly has an obligation to provide those essentials, doesn't it?

[american spirit]

Don't twist the words......whatever policy WM has is their business but don't force taxpayers to supplement their worker's healthcare.....corporate welfare at it's finest.

[american spirit]

What's the big deal if worker's use it?........what's next food stamps?......housing vouchers?. Why do you think so many other employers have let go Americans and hired illegals? They're able to evade payroll taxes and pay minimal wages knowing full well taxpayers are forced to supplement their employee's living expenses........don't think this bodes well for the long term health of our economy.

[Wiseghy]

The ultimate hypocrisy is when Democrats greatly increase the minimum income required to qualify for state Medicaid and Child Insurance programs, and then criticize employers for letting employees know about the availability of these programs.

Note, most state child health insurance programs are UNDER ENROLLED because the state does not spend money to communicate them to the public, and the forms are difficult to complete without the help of someone like an employers' HR department assistant.

A perfect example of how self serving politics cheats their own constituency.

[willyd]

WM hasn't forced anyone to supplement their workers' health care. They pay millions of dollars to administer a health care plan for their employees as a benefit. Their workers can participate in the plan if they choose to. If that benefit doesn't meet their needs, they are free to seek other employers that offer better benefits or seek additional aid from the government. They are not required to work there. We established Medicaid for people in this income bracket. Why are they not eligible just because they work at walmart and not some other low end job? It is not Walmart's fault that Medicaid is a pipe dream that has no hope of succeeding. If you want to get mad at someone, get mad at hillary clinton.

[an amused spectator]

Maryland legislators voted Thursday to enact a first-in-the-nation requirement that Wal-Mart Stores Inc. spend more on employee health care.

"Fascism is typified by totalitarian attempts to impose state control over all aspects of life: political, social, cultural, and economic. The fascist state regulates and controls (as opposed to nationalizing) the means of production. Fascism exalts the nation, state, or race as superior to the individuals, institutions, or groups composing it." - Wikipedia

"Although both communism and fascism are forms of totalitarianism, fascism does not demand state ownership of the means of production..." - The New Dictionary of Cultural Literacy, Third Edition. 2002.

[Chode]

and Atlas PUKED!!!

[taxcontrol]

I doubt that Walmart will actually have to spend more than what it is already spending. Walmart has already testified that they spend between 7% and 8%, depending on what gets counted towards health care.

A very easy tactic would be to alter the health plan sightly or change the other benefits vs health benefits and not spend a single dime more.

[Gabz]

By overriding Governor Ehrlich's veto, liberals in the Maryland House joined the same in the Senate who voted yesterday. The Democrats have ensured that people in Maryland who shop at Wal*Mart will pay higher prices.

The LIEbrrals in Maryland have just put over 7,000 people on the unemployment rolls is what they have done.

WM will either shut down stores or lay off employees to get below the 10,000 figure.................and they won't be opening any new stores or distribution centers in the near future.

[Gabz]

Why in the world do you think Md. taxpayers (as well as other states) should have to support the workers from one of the richest companies in this country?

Why do you think the government should force any private company to provide anything but a wage to it's employees?

[NeoCaveman]

I'm hoping that Atlas shrugs.

The looters are the government.

[Gabz]

Agreed, the resulting loss of jobs and the lack of affordable merchandise for the people to purchase will drive more then a few pols from office in Maryland.-

You don't understand Maryland. Unless WM hits the major areas, pulling out is only going to hurt the really poor in areas that actually elect Republicans and conservatives...........but alas they are rural areas that have little other employment opportunities.

[davisfh]

"Wal-Mart should take a page from Ayn Rand and pull out of the state."

There may be more truth than fiction in this statement. In any case, if this stands, it will be interesting to see how Wal-Mart responds to this. As far as pulling out of the state goes, that may not be practical. The real estate that Wal-Mart owns is extremely valuable and abandoning it may not be an option.

I suspect that the Wal-Mart/Sams operation in Arkansas is a highly political organization and you can just about bet that this issue is already being worked. Stay tuned and I imagine that you're going to be amused, pleased and awed.

[Myrddin]

Walmart should add a 10% surcharge to everything sold in stores within Maryland. Identify the charge on the receipt as the Maryland healthcare tax imposed upon them. If Maryland shoppers don't like it, they can complain to their politicians or shop outside Maryland. Walmart could also start by closing all the low performing stores in Maryland to compensate.

[Alberta's Child]

If I remember correctly, the law doesn't apply specifically to Wal-Mart by name -- but Wal-Mart is one of the few (if not the only) companies that is impacted by it because it is targeted at employers over a certain size in the state.

My prediction is that Wal-Mart is going to circumvent the law by listing each individual store and warehouse as a separate corporate subsidiary of the parent company.

"Joe Smith doesn't work for Wal-Mart . . . he works for WM Store #123, Inc."

[Jacquerie]

I seem to recall that doing that kind of thing violates the US Constitution.

I think you correctly refer to a ban of "bills of attainder".

How about a freeper attorney to answer this.

[Myrddin]

No - I think the headline should read - MD forces Wal-Mart to outsource staffing in units of 9,999. If they are not the employer, but some temp agency - like WMCo1, Inc. and WMCo2, Inc. are, and are each less than 10k in total employment - MD can pound sand.

There is the strategy. Close enough Walmart stores to reduce their employee population below 10,000. Shutter low performing stores until you get the population of Maryland employees under 10,000.

[mdmathis6]

I think there is broad evidence that despite the lack of a corporate name in the Bill, it will be shown that the Bill is a Bill of Attainder and thus thrown out in Federal court, though it may take the supremes to do it!

[Myrddin]

Don't twist the words......whatever policy WM has is their business but don't force taxpayers to supplement their worker's healthcare.....corporate welfare at it's finest.

There is the second fallacy in your position. The taxpayers have no damn business getting stuck with paying for healthcare either. Damn socialist politicians buying votes by taxing productive people.

Corporations don't pay taxes. They just add them to the cost of the end product. Demanding higher taxes from a corporation just raises the prices to the end purchaser. Lots of people depend on cheap prices at Walmart to stretch a budget. Walmart needs to break out the "healthcare" tax so shoppers can place the blame where it belongs...on the socialist politicians.

[ol' hoghead]

The bill requires companies with more than 10,000 Maryland employees to spend at least 8 percent of their payroll on employee health care or pay the difference into the state’s Medicaid fund.

The states' lawyer could argue the law applies to all megabusinesses in Md.

W-M is probably the only one with 10,000+ employees.