Wal-Mart Backs a Mandate on Health Insurance

Wal-Mart Backs a Mandate on Health Insurance in Group Health Insurance

In a letter to the White House and Congress, Wal-Mart’s chief executive Michael T. Duke endorsed “an employer mandate which is fair and broad in its coverage,” reports The New York Times. Wal-Mart, the nation’s largest private employer, has long resisted a group health insurance mandate.

This new stance stunned more than a few folks. Not to mention the letter was cosigned by the Service Employees International Union and liberal think tank Center for American Progress — strange bedfellows for a company with an embattled history with unions and a reputation for being stingy with benefits.

Now that health care reform is becoming certain, companies are starting to jockey for a spot at the negotiating table. Or as Rahm Emanuel said, “Everybody is trying to get their seat on the train,” adding that other CEOs have also expressed support for the idea of requiring employers to provide their workers health insurance.

The tide is undoubtedly turning. A pharmaceutical trade-group representative recently pledged to reduce prescription drug costs by $80 billion over the next decade. Hospitals have a similar cost-cutting agreement in the works.

What is Wal-Mart bargaining for with their endorsement of a health insurance mandate? A guarantee that health care costs will be contained by what’s called a trigger mechanism. They would like to see a system in place that would kick in automatic reductions if certain spending targets aren’t met.

Grab a front row seat, ladies and gentlemen, the next round of negotiations promises to be the most intense yet.

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