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.