Maryland has passed legislation that appears to have been directed in large part at the huge retail chain Wal Mart.
“Under the Maryland law, employers with 10,000 or more workers in the state must spend at least 8 percent of their payrolls on health insurance, or else pay the difference into a state Medicaid fund” …”The legislature’s move, which overrode a veto by Gov. Robert L. Ehrlich, was a response to growing criticism that Wal-Mart, the nation’s largest private employer, has skimped on benefits and shifted health costs to state governments.” (NY Times)
The cost of healthcare for WalMart’s employees will have to be paid for my someone. I expect it will be passed on the WalMart shoppers in the form of higher prices. Or to its stockholders in the form of lower profits. That’s OK with me. It’s putting the costs where they belong, as opposed to using tax dollars to subsidize the enormous expansion of a few big businesses.
Somehow, I think Wal Mart can afford it. “WalMart’s profits topped $10 billion for the first time last fiscal year as overall revenue rose 11 percent to $285 billion” (Business Week OnLine, Jan 4, 2006)
Category: Second Opinions
