Health care legislation targets Wal~Mart

Tuesday, January 17, 2006

For immediate release: Tuesday, Jan. 17, 2006

Contact: Danielle Nelson (614) 644-8728

Health care legislation targets Wal-Mart

State Representative Jennifer Garrison, D-Marietta, today introduced legislation that would stop Ohio’s biggest corporations from shirking their responsibility to do right by their employees and pay a fair share of health care costs.

Garrison’s bill, House Bill 471, would require any corporation with more than 30,000 employees in Ohio to spend 8 percent of their payroll on health benefits for employees or pay a like amount into a new Ohio Fair Share Health Care Fund.

The goal is to stop taxpayers from getting socked with the tab when corporations don’t live up to their responsibilities. The Fair Share Health Care Fund would be used exclusively for Ohio’s Medicaid health insurance program, which picks up the tab for many working poor Ohioans who aren’t covered by their employers.

Only two companies now employ more than 30,000 people in Ohio: Wal-Mart and the Kroger Co. It is believed the legislation would only impact Wal-Mart.

Despite $10 billion in profits, only 48 percent of Wal-Mart employees are now covered by company health insurance, Garrison said. Part-time Wal-Mart employees must wait two years before enrolling and are ineligible for family coverage. Full-time employees must wait 180 days before enrolling, she said.

As a result, Ohio taxpayers are paying for many Wal-Mart employees’ health insurance.

“Wal-Mart is one of the richest, most profitable corporations in the world – and yet Ohio taxpayers are footing the bill because Wal-Mart won’t live up to its basic responsibility to help their employees see a doctor,” Garrison said. “It’s wrong. It’s time to stop rewarding a corporation that’s profiting at the expense of Ohio taxpayers.”

Senator Bob Hagan of Youngtown announced similar legislation on Friday. His proposal would cover corporations with more than 1,000 Ohio employees.

Garrison said today she is satisfied with her more cautious approach.

“I think the point here is that it’s time for Ohio to set a standard for big corporations to live up to,” Garrison said. “Most of us understand, intuitively, that profitable corporations do have a responsibility to make sure their employees have affordable health insurance. Let’s start there by setting a standard and making sure our state’s largest employers are setting the right example for other employers.”

“This is a pro-business bill,” Garrison added. “Many small and medium-sized businesses are trying to do the right thing and providing health care benefits for their workers. It’s unfair for small businesses that are doing right by their employees to try to compete against giant corporations – like Wal-Mart – that are passing the buck onto the taxpayers.”

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