Fair Share Health Care veto override vote soon
Posted by Thomas Nephew on 9th January 2006
Maryland’s Fair Share Health Care Act, passed last year, promised to require companies with over 10,000 employees in the state to pay at least 8% of payroll for health insurance, or pay the shortfall into the state’s Medicaid fund. The only company in the state that’s likely to be affected is Wal-Mart; while other large employers like Northrop Grumman and Johns Hopkins University pay decent health benefits, Wal-Mart — by its own admission — does not. From an internal memo leaked in December:
Wal-Mart’s critics can easily exploit some aspects of our benefits offering to make their case; in other words, our critics are correct in some of their observations. Specifically, our coverage is expensive for low-income families, and Wal-Mart has a significant percentage of associates and their children on public assistance. [...]
In total, 46 percent of Associates’ children are either on Medicaid or are uninsured
Republican Governor Ehrlich vetoed the bill in May — in a notably disquieting scene in the Eastern Shore town of Princess Anne, with high ranking Wal-Mart executive Eduardo Castro-Wright delightedly looking on as protesters were literally silenced and forbidden to display signs by the local sheriff.
Now the long-awaited attempt by the Maryland legislature to override that veto is finally at hand. In December, the Washington Times’ S.A. Miller reported:
“The House leadership is considering the bill one of the top priorities, if not the top priority,” said [House Majority Whip Anthony] Brown, a Prince George’s Democrat who is also the running mate of gubernatorial candidate Baltimore Mayor Martin O’Malley. [...]
Mr. Brown said he was “pretty confident” the General Assembly leadership will secure the requisite 85 House votes to override the Wal-Mart veto when the session convenes Jan. 12.
Sen. Andrew P. Harris, a Baltimore County Republican and the minority whip, expects the veto also to be overridden in the Senate, despite “having every Republican supporting the governor.”
The latest volley in the debate has come from the Maryland Chamber of Commerce, which released a legal opinion last Wednesday that the bill conflicts with the federal Employee Retirement Income Security Act (ERISA). Maryland Gazette.Net’s David Tallman explains:
Under ERISA, the federal government prevents states from requiring employers to provide a certain level of benefits.
“It has a fairly sweeping pre-emption to any state legislation covering employee benefit plans,” said Ronald W. Wineholt, the chamber’s vice president for government affairs.
Not everyone agrees:
Phyllis C. Borzi, who teaches law at the George Washington University Medical Center, said Smith’s analysis would have been valid 10 years ago, but since a 1995 decision, the Supreme Court has given states more control in regulating employee benefits.
Unless state laws specifically prescribe the kinds of benefits, they will not be pre-empted by ERISA, Borzi said.
So suddenly we’re for national employee benefit standards, are we? Let’s check back with the Maryland Chamber of Commerce when a national health care debate gets back in the headlines. The same warning can be given to Governor Ehrlich, who’s criticizing the Act as a new business tax. Yet it’s one that will be a drop in the bucket (politically, if not financially) compared to a national health care system — the chief alternative for providing decent, paid-up health care for those 46% of Wal-Mart “associate” kids. Assuming, for the sake of argument, that Ehrlich and his pals give a damn about them in the first place.
Don’t get me wrong — like Mark Schmitt, I’d prefer a national health care system to a patchwork, Rube Goldberg scheme stitching together Medicaid, employer based benefits, and the rest of it. But I don’t support making the perfect the enemy of the good. And as Schmitt observes, “You only get political consensus for public benefits when there’s pressure for employer-based benefits.”So in the meantime, I want the Fair Share Health Care bill. The Chamber of Commerce may hate it, but not all businesses do; one of the major reasons the bill passed was that Giant Foods CEO Dick Baird supported it — it levels the playing field between his company, paying decent wages and benefits, and the Medicaid-freeloaders at Wal-Mart. Public subsidies for working Americans should not be allowed to result in competition-altering wage and benefit pressures on unionized companies.
You can support the Fair Share Health Care bill by sending an e-mail to Maryland delegates and state senators via Maryland for Health Care.
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UPDATE, 1/9: Wake-Up Wal-Mart provides links to Maryland legislators:
You can contact your legislators by email via this page, find out who your legislators are via this page, or you can talk to them directly by calling the Maryland General Assembly switchboard and asking for them. The phone number is 410-841-3000.
UPDATE, 1/12: Washington Post: Md. Senate Overrides Veto on ‘Wal-Mart Bill’. YAY!
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