Noemie's post reminded me that I hadn't gotten around to writing about an important piece of legislation making it's way through the process this session. It doesn't appear on the pre-file list, but the latest version I saw is Bill Req #:3415.1/06 "Establishing minimum labor standards for certain large employers as related to health care services expenditures."
**Beware, this may be boring to many people, please skip to the bottom for an important action item if you begin to feel drowsy!**
This legislation aims to establish a floor for employer based coverage that will stop the further erosion of employer-based coverage, a critical part of our health care system.
The legislature is set to hear arguments on the Fair Share Health Care bill on January 19th. Fair Share Health Care is a union backed initiative that is being pushed all across the country. The basic gist is that large employers must provide a bare minimum health care coverage, if they do not, they must reimburse the state for that difference. This is largely in response to Wal-Mart who is notorious for leeching off state health care systems. Here in Washington alone we paid $1.6 million last year to insure 341 Wal-Mart employees through the Basic Health Plan. Similar legislation was passed in Maine last year, but was vetoed by the Governor with an executive from Wal-Mart standing beside him.
The legislation to be discussed this session only affects employers with 5000+ employees and sets the rate for private businesses at 9%, and non-profits at 7%. So if a large company only pays 6% of their payroll towards healthcare for their employees, they must reimburse the state 3% of their payroll - which will go towards the Health Services Account (to fund BHP). There are exemptions for high wage employees so that high-wage employers aren't hurt by their relatively low expenditure on healthcare.
There was apparently quite a bit of debate on where to set these percentages so as to not unduly harm good employees in the state, like Costco. My understanding is that Costco has been convinced to stay neutral on this bill, and possibly even be supportive. The hospitals are ok because they are up over the threshold even before high-wage deductions, the restauraunt association has no members over 5,000 employees so they are ok. In reality this doesn't affect a whole helluva-lot of employers in the state, but the standards are so low that those it does affect really ought to be ashamed of themselves.
There is a pretty impressive set of groups lined up behind this legislation, including: Washington State Labor Council, Washington Community Action (formerly Washington Citizen Action), UFCW International, SEIU State Council, WA State Nurses Association, WFSE, WA State Hospital Assoc, Community Health Network of Washington, WA State National Organization of Women, Planned Parenthood affiliates of WA, WA for Healthcare, WA Alliance for Retired Americans, and lots more.
However, as always, this won't be easy. One really important part of getting this legislation passed is naming the companies that are leaching off our public health care system. 18 other states name the employers of people who are enrolled in basic health plans. Just recently Governor Gregoire announced that she still will not release that information in Washington State. EVEN THOUGH WE ALREADY COLLECT IT. There was initially some concern that if the Employment Security Division provided this data, they may be in violation of Dept. of Labor regulations. However it has been discovered the DSHS and the Health Care Authority have been tracking this information and providing to to legislators on condition of a pledge not to divulge that information.
There is no law against DSHS or HCA making this information public, they have just declined to do so. The Fair Share Coalition fears that this may signal efforts to derail this legislation. So we all need to make our voices heard.
Please send an email to Governor Gregoire's health care point-person, Christina Hulet - Christina.Hulet@ofm.wa.gov, and call Governor Gregoire at 360-902-4111. Tell them that Washington State taxpayers deserve to know which large employers are using taxpayer dollars to subsidize healthcare for their employees and their dependents.
PortDork