Official seeks cheaper health insurance

Wednesday, April 13, 2005

By Terrence Dopp

gcnews@sjnewsco.com

TRENTON -- One state lawmaker on Tuesday proposed legislation that would force Wal-Mart to provide employees with cheaper health insurance.



Under the bill, modeled after a measure passed recently in Maryland, the company and other large employers would be required to spend at least 8 percent of their payroll on health benefits. Critics of the company contend it profits from offering employees sub-par benefits.



The Arkansas-based retail giant, which officials said employs over 12,000 in the Garden State, and other large chain retailers have increasing come under fire for creating obstacles to block employees from attaining insurance."



"Wal- Mart's 'Always low prices' motto has a catch. The company appears to achieve efficiencies on the back of its hard working employees," said Assemblyman Louis Greenwald, D-Camden.



"The company provides insufficient levels of health insurance, forcing New Jersey's taxpayers to pick up the tab for the company's stingy practices."



Greenwald has not introduced the legislation.



In the current state budget, over $300 million is set aside to pay for so-called Charity Care. Because hospitals are legally required to render medical care to all, the uninsured often use it as a first choice.



Legislators have long looked to cut this area of state funding.



Such legislation is "realistic from the standpoint that what you have now is the state's taxpayers subsidizing an enormous number of people," said Sen.



Stephen Sweeney, D-3 of West Deptford, what said he had recently requested a copy of the Maryland legislation and was looking to study it before taking any action.



Sweeney is also sponsor of a measure targeted at Wal-Mart that would require large retail chains looking to construct stores in New Jersey to complete and disclose thorough impact statements detailing traffic changes and regional economic impacts of new outlets.



"It's an interesting bill but I want to read it before I advocate for it," Sweeney added. "But I have had my eye on it."



A spokesman for Wal-Mart said lawmakers are making the corporation, which has 5,000 retail outlets and sales of $285 billion, the fall guy for a larger health care crisis.



"Wal-Mart provides really good jobs to the state of New Jersey," spokesman Nate Hurst told the Associated Press. "Legislation aimed to take a swipe at a company that provides more than 12,500 jobs in the state is not good legislation."



Hurst disputed Wal-Mart's culpability, saying company health insurance premiums start at less than $40 a month for individuals and less than $155 a month for families. A full-time Wal-Mart salesperson in New Jersey earns



$10.11 an hour, Hurst said, well above the current $5.15 minimum wage.



Some 56 percent of Wal-Mart workers nationwide are enrolled in company health plans, and 86 percent of workers have health insurance, Hurst said.



Republicans in the Legislature appeared unconvinced of the need for Greenwald's legislation. The state's highest elected Republican said it was unwarranted meddling in the workings of a private company.