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Labor Groups To Promote Bills Requiring Large Employers To Increase Spending On Employee Health Insurance, USA
Author:佚名    InfoSource:Medicalnewstoday    Hits:    Update Time:2006-2-3 Recommend


Labor groups this week hope to "capitalize on anti-Wal-Mart sentiment and to build momentum" in a number of states, such as New Hampshire and Washington state, for legislation that would require large employers to increase spending on employee health insurance after Maryland enacted such a bill last week, the Washington Post reports (Joyce/Mosk, Washington Post, 1/14). The Maryland General Assembly on Thursday overrode a veto of the legislation by Gov. Robert Ehrlich. The new law will require employers with more than 10,000 workers in the state to spend at least 8% of payroll on employee health insurance or pay into a fund for the uninsured. Four companies in Maryland have more than 10,000 employees, but the law will affect only Wal-Mart (Kaiser Daily Health Policy Report, 1/13). Labor groups plan to promote similar legislation in at least 31 states (Washington Post, 1/14). For example, West Virginia lawmakers are considering a bill similar to the new Maryland law. The legislation likely would only affect Wal-Mart, which has 12,054 employees in West Virginia. State Sen. Dan Foster (D) said, "The largest employer in the state doesn't provide what most people feel is an adequate level of health care" (Wall Street Journal, 1/17).

Legality Questioned
In related news, Wal-Mart spokesperson Sarah Clark on Friday said the U.S. Chamber of Commerce and the Maryland Chamber of Commerce have questioned the legality of the Maryland law. Clark said, "I'm sure that is something our attorneys are looking into as we decide our course of action." Henry Smith, an attorney who reviewed the law for the Maryland chamber, said that the legislation violates the federal Employee Retirement Income Security Act. Smith said, "Any state attempt to regulate an employee benefit plan is pre-empted by the federal employee benefit law because of the Congress' belief that a single federal regulatory scheme for employee benefits is preferable to 51 separate, varying state schemes." Ronald Wineholt, vice president of the Maryland chamber, said that, although the group probably does not have legal standing to challenge the law, the legislation "is ripe for a legal challenge." However, Maryland Attorney General Joseph Curran (D) in a letter said, "The Fair Share Act does not specifically refer to employee welfare benefit plans" (AP/Richmond Times-Dispatch, 1/14).

Broadcast Coverage
Several broadcast programs reported on Maryland lawmakers' ruling and its implications nationwide:

  • APM's "Marketplace": The segment includes comments from Clark; Vincent DeMarco, president of the Maryland Citizens' Healthcare Initiative; Paul Kelly, senior vice president for federal and state government affairs at the Retail Industry Leaders Association; and Ron Pollack, executive director of Families USA (Palmer, "Marketplace," APM, 1/13). The complete segment is available online in RealPlayer.

  • CBS' "Evening News": The segment includes comments from Maryland Dels. Anne Healey (D) and Herbert McMillan (R); Mia Masten, spokesperson for Wal-Mart; Pollack; Kevin Thornton, spokesperson for Wal-Mart; and Wal-Mart employees (Mason, "Evening News," CBS, 1/13). The complete segment is available online in Windows Media.

  • NPR's "All Things Considered": The segment includes comments from Laura Tobler, health policy analyst at the National Conference of State Legislatures (Siegel, "All Things Considered," NPR, 1/13). The complete segment is available online in RealPlayer.

  • NPR's "Weekend Edition Saturday": NPR newscaster Sheilah Kast discusses the ruling (Kast, "Weekend Edition Saturday," NPR, 1/14). The complete segment is available online in RealPlayer.


"Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.


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