Wal-Mart Throws Its Weight Behind an Employer Mandate
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After a few heart-sinking days where it seemed real healthcare reform was headed off the rails, there’ve been a few bright spots in the news just lately. I’m not an optimist, but I have to admit I’m beginning to feel—dare I say it?—cautiously optimistic. The American Medical Association is now “open” to a government-funded health insurance option. The Senate Health, Education, Labor, and Pensions Committee (which counts among its members Vermont’s own Bernie Sanders) has drafted a new bill that costs less than the last proposed plan, covers more people—about 97% of Americans—and includes a public option. I really don’t see how Republicans or so-called Conservative Democrats (shudder) can argue against the bill— other than shouting “No fair! There’s not enough of a giveaway to the private insurers and drug companies that gave my campaign millions of dollars to kill healthcare reform!” And I really don’t see that going over very well with the American people. (Well . . . maybe this guy.)
Let’s not forget the role Wal-Mart has played in the debate. (I know—weird, right?) A couple of days ago, Igor Volsky, co-author of the just-released Howard Dean’s Prescription for Real Healthcare Reform: How We Can Achieve Affordable Medical Care for Every American and Make Our Jobs Safer, writing for Think Progress’s Wonk Room, talked about Wal-Mart’s position on the employer mandate—it’s a move that may seem suspiciously altruistic, but just proves that health reform is good for big businesses’ bottom lines.
Today, Wal-Mart, the largest private employer in the country wrote a letter (along with the Center for American Progress and SEIU) to the Obama administration expressing its support for the employer mandate: [Read the full letter HERE]
We are for an employer mandate which is fair and broad in its coverage, but any alternative to an employer mandate should not create barriers to hiring entry level employees….Support for a mandate also requires the strongest possible commitment to rein in health care costs. Guaranteeing cost containment is essential. One way to ensure savings was recently advanced by former Senate Majority Leaders Howard Baker, Tom Daschle and Bob Dole, “Implement pre-specified targets for spending growth and enact a “trigger” mechanism that automatically enforces reductions,” (Crossing Our Lines, Bipartisan Policy Center) President Obama suggested strengthening the role of Med Pac to help enforce spending discipline.
Wal-Mart’s support for an employer mandate is highly significant, but so is its rejection the ‘free rider provision’ — a likely component of the Senate Finance Committee’s bill — and request for a trigger to ensure the reduction of health care costs. By embracing an employer mandate now, Wal-Mart raises its profile on the issue — not to mention cleanses its tarnished reputation — and helps mold a likely component of health care reform: a requirement that every large employer provide adequate coverage or pay a certain percentage of its payroll towards financing health care for its workers. [. . .]
On the whole, this is a win-win for reformers. The nation’s largest employer has embraced a mechanism that enhances the existing system of employer-based coverage, levels the playing field between employers and preserves the employer contribution — an important source of funding for health care reform. In turn, it has requested that we guarantee cost reductions and steer clear of a policy that undermines low-wage workers. Let’s hope the Senate Finance Committee is listening.
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