Fair Share for Health Care in Maryland

Drum Major Institute for Public Policy: Marketplace of Ideas
New York, NY

Target Level of Government:  State
Policy Category:  Health Care
Possible Allies:  Health Advocacy Groups, Labor, Small Business Associations, Employers who already provide health benefits

The law obligated large employers to pay their fair share of employee health care costs rather than pushing the burden onto employees themselves and compelling the public to bear the costs in the form of Medicaid and emergency room visits. It required for-profit employers with 10,000 or more employees in the state to spend at least 8 percent of payroll (the state’s average) on employee health care benefits, or pay an equivalent amount into a state Medicaid fund. Non-profit employers must spend at least 6 percent of payroll. Wal-Mart was the only large employer in Maryland not already meeting this standard. This law was struck down for violating the Employee Retirement Income Security Act.

Resources:
Watch, listen, or read a transcript of DMI’s Marketplace of Ideas panel discussion with MD State Senator Gloria Gary Lawlah, sponsor of the fair share for health care legislation at http://www.drummajorinstitute.org/events/unique_event.php?ID=37

Details:
In 2005 the State of Maryland approved the Fair Share Health Care Bill, which is better known as the Wal-Mart Bill.  Then Maryland Gov. Bob Ehrlich (R) vetoed the bill, to which the state legislature voted  to override the veto.  Suddenly, Maryland had become a case study on whether employers should spend a specific amount to cover their employees’ health care coverage.

When you start a new job, you expect to have health care.  Now, we see this changing.  Sadly, we know that with the passage of the Wal-Mart Bill, it still will not solve Maryland or America’s health care dilemma.  The Wal-Mart Bill addresses a symptom, and that’s poor employee health care access. It does not address the disease, which is the inability of our nation to guarantee all of its citizens some form of affordable healthcare.
- State Senator Lawlah at DMI’s Marketplace of Ideas, May 2006