Washington lawmakers urge ‘Fair Share’ health coverage

OLYMPIA – Washington taxpayers are picking up the health insurance tab for thousands of workers at Wal-Mart and some of the state’s other biggest private employers, according to a new state report.

“That money comes from your pocket and mine,” said Sen. Jeanne Kohl-Welles, D-Seattle.

Kohl-Welles and other lawmakers are trying to build momentum for a “Fair Share” bill to require the state’s biggest companies – those with 5,000 or more workers – to spend at least 9 percent of their payroll on health care. Companies that don’t would have to contribute to a state health fund.

“We’re asking our peers in the state of Washington to pay a fair share,” said local proponent Don Barbieri, chairman of the board of Spokane-based Red Lion Hotel Corp. “They need to step up.”

Barbieri is also trying to convince lawmakers to pass a related measure , House Bill 2572, which would subsidize health coverage premiums for employees at small companies.

Wal-Mart officials, the Association of Washington Business and the state retail association are trying to sink Senate Bill 6356. It will do nothing, they say, to solve the real problem: skyrocketing health care costs.

“A lot of folks are realizing … the issue is much more complicated,” said AWB President Don Brunell. “It’s not going to be solved with a Wal-Mart bill or anything else.”

The Senate committee report, prepared by Senate researcher Jennifer Strus for Kohl-Welles and another senator, estimated the following Medicaid costs for four major employers:

Wal-Mart: 3,180 employees, costing the state an annual $11 million.

Safeway: 1,539 employees, costing $5.4 million.

Fred Meyer: 1,035, costing $3.6 million

Target: 814, costing $2.8 million.

“We’re talking about an $11 million annual subsidy to the most profitable corporation in this country,” Rep. Steve Conway, D-Tacoma, said about the Wal-Mart figure.

The actual numbers are likely higher, several lawmakers said, since the study didn’t include the cost of any Medicaid-covered children those workers likely have.

State Insurance Commissioner Mike Kreidler said he was “astounded” at how much the state is subsidizing major employers’ health care costs. But for years, he said, there’s been a steady erosion in the percentage of workers with employer-sponsored health coverage.

“This bill,” Kreidler said, “is an attempt to slow that race to the bottom.”

Earlier Tuesday, Gov. Chris Gregoire sounded lukewarm on the proposal. Yes, large employers shouldn’t be relying on state health care, she told reporters, but she said she’s uncertain the bill would help.

“We’re not sure it works as intended,” Gregoire said.

Proponents said they’re not discouraged.

“When the Legislature passes this and it reaches her (Gregoire’s) desk, we feel confident that she’ll sign it,” said Robby Stern, a lobbyist with the state labor council.

Wal-Mart, which has about 16,000 employees in Washington, questioned the report’s accuracy on Tuesday. And in any case, company spokeswoman Jennifer Holder said, the employment figures in the report were from 2004. The company has vastly improved its health care benefits since then, she said.

“It’s an apples and oranges comparison from Wal-Mart in 2004 to Wal-Mart today,” she said.

More than 615,000 of Wal-Mart’s 1.3 million workers, according to the company, are covered by company health plans.