Philadelphia, DC, and Baltimore Residents to Walmart: We Want Jobs that Pay a Living Wage
Senators want Wal-Mart healthcare info
By David Ellis - CNN/Money
June 23, 2005
NEW YORK (CNN/Money) - Hoping to foster greater responsibility for workers' healthcare costs in such companies as Wal-Mart, a group of Democratic lawmakers introduced a bill Wednesday that would require states to report the number of employees of large companies that rely on publicly-funded healthcare programs.

The Health Care Accountability Act, which was sponsored by Sen. Edward Kennedy of Massachusetts, Sen. John Corzine of New Jersey and New York Rep. Anthony Weiner, would not mandate a change in health insurance policies but require companies to disclose the number of employees that rely on taxpayer-funded healthcare programs such as Medicaid.

Wal-Mart, the number one retailer nationwide, has faced criticism recently for failing to provide healthcare coverage for many of its workers. Many of its critics believe the cuts made in employee benefits only serve to help the company's bottom line.

"Consumers shop at Wal-Mart and other huge retailers because they offer 'rock bottom' prices," New Jersey Senator John Corzine said in a statement. "The reason they can do so is because they often give their employees 'rock bottom' health benefits."

15 states, including Georgia, Florida and Massachusetts currently require large companies to report the number of employees that rely on government healthcare. According to data collected by lawmakers, the reliance of Wal-Mart employees on government healthcare cost taxpayers in excess of $210 million. Among other top abusers was Allied Domecq-owned Dunkin' Donuts.

In a statement, Wal-Mart defended its employment practices and noted that it was unfairly being singled out.

"We encourage transparency as long as the collection is equally applied to all employers in the U.S.," the company said. "Unfairly targeting individual companies is simply not the answer, especially when a company like ours provides over 1.2 million jobs in the U.S. and insures more than 900,000 people (associates and their families)."

While the legislation faces significant hurdles in a Republican-controlled Congress, Laura Capps, a spokesperson with Senator Kennedy's office, said with over 600,000 workers relying on government healthcare, the criticism is not undue.

"The point is they are an easy target because of how egregious their negative impact is on states," said Laura Capps, a spokesperson for Senator Kennedy's office. "We think with all this pressure they can change their policy - this is money that is coming from taxpayers and big employers are getting off without having to pay."

Shares of Wal-Mart (up $0.26 to $48.79, Research) edged higher in regular trade on the New York Stock Exchange to end at $48.79.