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Big box announces big news

Posted by: Ella Hushagen on Jul 02, 2009

Giant retailer Wal-Mart stated in an open letter that it supports employer responsibility as a component of health reform:

We are for shared responsibility. Not every business can make the same contribution, but everyone must make some contribution.

The announcement was made jointly with the Service Employees International Union (SEIU) and the Center for American Progress - liberal groups that have been historically critical of Wal-Mart's policies. It came as a welcome surprise to health reform proponents.

Not five years ago, Wal-Mart fought tooth and nail to overturn a Maryland state law that imposed an employer mandate, which required large employers to either cover workers or pay a fee. Now, America's largest employer says that such a requirement is a necessary part of a health care overhaul.

According to Jonathan Cohn,

After all of these years, Wal-Mart has suddenly found itself in the same situation its competitors once did: Dealing with unpredictable health costs and facing new competition from businesses that have found ways to spend even less on employee health benefits.

The Wal-Mart letter argues that,

From a business perspective, health reform could not be more critical. Premiums are expected to rise by 20 percent in less than four years ... costing 3.5 million workers their jobs, and cutting insured workers' average annual incomes by $1,700.

While the letter is short on details, Wal-Mart's support for employer responsibility pushes the debate in a favorable direction. The momentum Wal-Mart has lent health reform yesterday should not be underestimated.