Bruce Newcomb, the powerful Republican speaker of
Idaho’s House of Representatives, has a radical idea for the
conservative, business-friendly state: He’s threatening to
draft a law that would require Wal-Mart to either provide health
insurance for its Idaho employees, or pay the state for providing
coverage through the Medicaid program.
Around the
country, several studies indicate that, compared to employees of
other big companies, Wal-Mart employees are paid less, get fewer
benefits, and are more likely to rely on welfare programs (HCN,
6/7/04: Wal-Mart’s Manifest Destiny).
Armed with
those studies, Newcomb says, “Rather than taxpayers subsidizing the
wealthiest family in the world (Wal-Mart heirs), maybe the
wealthiest family in the world ought to reimburse Medicaid.”
Wal-Mart officials say they don’t rely on Medicaid
and other welfare programs to cover employees. But Newcomb has
asked Idaho agencies to determine how often the 6,400 Wal-Mart
employees in Idaho tap Medicaid. He’s also collected copies
of Wal-Mart documents that advise its California employees on how
to apply for state aid.
California tackled the issue last
November, with a ballot initiative that would have required big
companies to shoulder more health-insurance costs, but voters
narrowly defeated it.
Newcomb’s proposal
isn’t final yet, and would apply to all big companies in
Idaho. If he pushes it through the Legislature’s next
session, which begins in January, it would likely benefit
Albertsons, a nationwide grocery chain based in Boise.
Albertsons’ better pay and benefits make it harder for the
chain to compete with Wal-Mart. “State policy,” Newcomb says,
“should level the playing field.”
This article appeared in the print edition of the magazine with the headline Conservative legislator takes on Wal-Mart.
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