Recent press reports, including a front-page story in the Wall Street Journal, announced the news that Wal-Mart has signed a letter to President Obama endorsing the idea of an "employer mandate" -- a requirement that employers offer health insurance to their employees.
Why would Wal-Mart -- the nation's largest employer -- endorse such an idea? Simple: It would cripple many of their competitors, says Robert Book, a health economist with the Heritage Foundation.
- Wal-Mart has 1.4 million U.S. employees and can negotiate a health insurance contract for them all at once.
- As a large multi-state employer, they can self-insure and provide coverage under federal regulations contained in the Employee Retirement Income Security Act of 1974.
- Self-insurance exempts Wal-Mart from costly compliance with most state health insurance regulations.
- Wal-Mart's small competitors that have less than 20 employees often pay more than twice as much per employee for the same insurance coverage, and small employers must comply with sometimes-onerous state regulations.
Supporting the employer mandate is just another way large business can harness the forces of government to hobble their smaller competitors.
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image toon - hcare mny = Economy v Health Care costs = ironic
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