Wal-Mart backs employer health insurance mandate

Wal-Mart backs employer health insurance mandate

By CHARLES BABINGTON
Associated Press Writer


WASHINGTON (AP) -- Wal-Mart has embraced President Barack Obama's call for requiring all large employers to offer health insurance to their workers, adding momentum to the president's push for far-reaching changes to the nation's health care system.

Wal-Mart, the nation's largest private employer, announced its position in a letter to congressional and administration officials Tuesday. It was joined by a major labor union that sometimes has criticized Wal-Mart as stingy with employee benefits.

"We are for an employer mandate which is fair and broad in its coverage," the letter said. "Any alternative to an employer mandate should not create barriers to hiring entry-level employees."

That was a reference to some proposals in Congress to have employers pay the Medicaid costs of new hires. Critics say that would discourage the hiring of low-income people.

The letter was also signed by Andrew L. Stern, president of the Service Employees International Union, which has more than a million members and counts more U.S. health workers than any other union. Also signing it was John Podesta, who headed Obama's transition team and is president of the Center for American Progress.

The letter could give a push to two efforts: Wal-Mart's bid to improve its image regarding worker treatment, and Obama's plan to change the nation's health care system, including insuring virtually all Americans and controlling costs.

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http://hosted.ap.org/dynamic/stories/U/US_WAL_MART_HEALTH_CARE?SITE=CONGRA&SECTION=HOME&TEMPLATE=DEFAULT

And they figure itll break the backs of their competitors, enabling them to swallow up more market share.

It will cost Wally but it will cost their competitors more.

An even playing field = advantage Wally.

If Obama agrees he should push for some minimum requirements in max premiums and max deductibles.
No $280/mo plan with $8000 deductible and then only 70/30 coverage with no catastrophic max.

Real coverage.

imagine if they had an insurance outfit that sold service to customers.. You could receive medical care at any Walmart clinic for a nominal flat fee with even cheaper script costs. I envision this strange embrace by Walmart as a step in this direction.

How many of their current employees have to opt out of the company health plan because they cannot afford it? Unless you are management, or you have a spouse who makes a lot of money, I don't see how most rank and file employees can afford their plan.

wants, so it can't be all bad.

I've known people who kept working at low paid jobs with benefits for fear they would not be able to find another job that might pay more but not have included benefits, or worry about pre-existing conditions being covered. I suspect that is what Wal-Mart is counting on.

Wal-Mart backs health benefits mandate
By Jeffrey Young
Posted: 06/30/09 03:17 PM


With Wal-Mart’s endorsement of a legal requirement that employers provide health benefits to their workers, the nation’s largest employer has broken from the business community.

The so-called employer mandate is adamantly opposed by the U.S. Chamber of Commerce, the National Federation of Independent Business and virtually every major business trade association in Washington. But the backing of Wal-Mart, which employs about 2 million people, could give a big boost to President Obama and Congress’s effort to levy such a requirement on companies.

Moreover, Wal-Mart declared its support for the employer mandate in a joint letter to Obama with the Service Employees International Union (SEIU) and the liberal Center for American Progress, which is run by John Podesta, a close associate of the White House.

“We are entering a critical time during which all of us who will be asked to pay for health care reform will have to make a choice on whether to support the legislation,” says the letter, signed by Wal-Mart President and CEO Mike Duke, SEIU President Andy Stern and Podesta.

“This choice will require employers to consider the trade off of agreeing to a coverage mandate and additional taxes versus the promise of reduced health care cost increases.”

The decision by Wal-Mart to break away from the Chamber and its ilk marks the first visible crack in the business coalition on healthcare reform.

more...

http://thehill.com/business--lobby/wal-mart-backs-health-benefits-mandate-2009-06-30.html

is hopeful that this will pass also because it costs an arm and a leg to insure the employees. It's a constant struggle EVERY YEAR because the premiums keep going up, and the benefits keep declining. I think we're probably one of the few companies who still pays for their "employee-only" premiums (however, this will be changing in the next year or so), but the dependent insurance is a monster. For prospective and/or new employees, the salary used to be the main factor in determining whether or not to work for a company, but now health benefits are just as important as the annual salary. Healthcare benefits are the heart and soul of any SUCCESSFUL company. So, I'm not surprised that Wal-Mart is getting on board with this.