Washblog || Fair Share Health Care: Its Time Has Come

Fair Share Health Care: Its Time Has Come

By Senator Jeanne KohlWelles
Fri Feb 10, 2006 at 04:46:43 PM PST
Section: Diary Topic: Labor issues

[editor's note, by Brian] - Thank you Senator for posting on Washblog, lets make some calls to our legislators and get this bill onto the floor

Fair Share Health Care: Its Time Has Come
By Senator Jeanne Kohl-Welles (D-Seattle)
Washington State Senate

As health-care costs continue to spiral, increasing at two to three times the rate of inflation -- and with the state picking up more of the tab -- it's time we put a stop to corporate welfare.

That's why I introduced Senate Bill 6356. SB 6356 would level the playing field by requiring employers of 5,000 or more employees (full-time and part-time) in Washington to spend 9 percent (for-profit business) or 7 percent (nonprofits) of their payroll on health-care coverage or pay the difference to the state Health Services Account for public coverage programs serving the uninsured.

The need for legislation is indisputable.

Fewer employers are providing health care for their workers. Five years ago, 7 out of every 10 employers offered coverage. Today, it's only 6 out of every 10 employers who offer coverage.

This erosion in private-sector coverage is one of the primary reasons that the number of uninsured in the U.S. has increased to 46 million, which is 5 million more than were uninsured just 5 years ago. In Washington, it is staggering to think that 600,000 people don't have health care coverage.

In addition to declining coverage in the private sector, state spending on health care is going up at unsustainable rates. Our state spent nearly $4 billion on health care last year, nearly twice as much as the state spent only five years ago. Today, 28 percent of every dollar spent by the state now goes to health care.

One factor that is driving increases in state expenditures is that the workers of some employers and their dependents, including children, are being covered through taxpayer-financed programs.

Senate staff released a report this week, using data from the state Office of Financial Management, on how much the state is spending on health care costs for some of the state's largest employers.

That report underscores this urgent and growing problem. The numbers tell us why it's imperative that the Legislature act now to stop some of our largest corporations from shirking their responsibilities and passing on health insurance costs to the taxpayers.

That report estimates that Washington spends $11 million a year, or $22 million per biennium, in Medicaid costs for just one of the state's largest employers alone.

By comparison, for $18 million over one biennium, the state could fund over 10,000 new enrollments in the Basic Health Plan. In addition, approximately 20,000 children could receive health care coverage under the Children's Health Initiative Program.

It is unfathomable to me that the world's largest employer, Wal-Mart, does not pay for the health care of a large number of its employees. Yet, it reported $312.96 billion in revenue in 2004.

Let's be clear that Senate Bill 6356 and its companion bill, House Bill 2517, do not vilify one company (Wal-Mart), but apply to all employers - public and private - having 5,000 or more workers. Indeed, Wal-Mart has received the most attention on this issue as the number one abuser of our health care system.

Recently, K-Mart announced that it's cutting back on full-time employees to save money. It's struggling to stay competitive with another giant who isn't playing by the same rules. Other companies take the fiscally and socially responsible action of paying for the health care of their employees. Costco, Starbucks, Brown and Cole, Frank Russell, and Red Lion Hotels are just some of the many companies in our state that do their fair share for their employees.

But when their competitors don't, and rely upon the taxpayers - that's you and me - to pick up the tab, those who are playing fair are penalized. From what I understand, this has already happened with some of our major and important employers, such as Safeway and Fred Meyer.

Can we blame them when they otherwise are increasingly less competitive with similar businesses?

This isn't just about corporate responsibility or fairness. It's about making sure that the health-care needs of employees are taken care of - and not with some corporation's hand in your pocket and mine.

If all corporations did the responsible thing - and most do - we wouldn't need this legislation. But when corporations aren't responsible, taxpayers and other corporations are stuck with the bill. It's time we change that.

It's time to stop shifting the cost to taxpayers. And it's time to stop penalizing the many companies already paying their fair share who remain at a competitive disadvantage unless they enter the "race to the bottom" by converting positions to part time and reducing employee health-care coverage.

A number of business leaders support SB 6356 and HB 2517, because they are pro-business. The legislation would stop large employers from abusing the system, which would have the effect of not only draining our state budget but also forcing all of us to pay higher insurance premiums to cover the uninsured in our state. For businesses, that means they carry higher costs in taxes and premiums because of cost-shifting.

This legislation isn't the sole answer to curbing our rising health care costs, but it's one thing that can be done.

It's more than time.

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Fair Share Health Care: Its Time Has Come | 19 comments (19 topical)

Wow!

Thank you Senator Kohl-Welles for posting here! I have only been following this through here on the blog and appreciate the information to talk about with others. I had no idea about their health care rates and how many employees are on the Basic Health Plan, it is incredible and outragous. Thank you, Senator!

by walla wallow on Fri Feb 10, 2006 at 04:54:55 PM PST

* 1 none 0 *

Yes, thank you Senator

Fair share in deed! Not one of my consumer dollars will be spent so as to support the morally bankrupt and corrupt Walmart Corporation and we need to stop spending tax dollars in support of them as well.
If we do not act now then it won't be long before others follow the Walmart model just like Kmart and bilk us of more millions.
So, with the Governor in support and strong support in the House, who exactly needs to be getting calls and letters? Do we lack the votes to pass the bill?

by Particle Man on Fri Feb 10, 2006 at 05:19:41 PM PST

* 2 none 0 *

Thanks, Senator!

I'm glad you're taking this fight to Wal-Mart, especially in light of their announced plans to keep growing at a crazy rate. It's about time our government, voters, and smaller businesses start to openly talk about the cost, not just to the government in tax dollars but to the employees who suffer without health care, when companies like Wal-Mart don't pay their fair share. I'm glad you and your colleagues are showing such strong leadership on the issue.

And thanks again for posting on Washblog!

Switzerblog'll knock you out!

by switzerblog on Fri Feb 10, 2006 at 05:33:34 PM PST

* 3 none 0 *

Switzy oh famous friend by Particle Man, 02/10/2006 05:56:23 PM PST (none / 0)

biodiesal is passing in the house now

by Particle Man on Fri Feb 10, 2006 at 06:01:39 PM PST

* 5 none 0 *

Thanks Senator!

I've said my piece on this issue plenty, but I'm glad you highlighted that this is a minimum labor standard law, not a "Wal-Mart bill." If there was only one company in the state trying not to pay minimum wage, would it be picking on them to compel them to do so?

I think not.

To answer a previous poster, my understanding is that at least in the house, Speaker Chopp is the main holdup. As a resident of Frank Chopp's district, it really bothers me that he is stalling this bill. I'm probably being naive, but what exactly is the difference politically if this comes out of the House first (to which he is apparently opposed)? He is also apparently the main stopping point for the Family Leave Legislation as well. I can't believe that either of these two bills are any more radioactive politically than the non-discrimination bill that recently passed...So what gives?

PortDork

by PortDork on Fri Feb 10, 2006 at 06:23:11 PM PST

* 6 none 0 *

Hopefully we can get the senate bill through by Brian, 02/12/2006 11:21:50 AM PST (none / 0)

Thanks, Senator! I had not considered

the impact this has on other businesses who do want to play fair. But, of course that would be the case, wouldn't it? It's a bit like the broken window theory -- if we let some companies "trash" our civic environment -- then other companies will too -- either out of business necessity, or because that's the norm.

So thank you for standing up for good corporate behavior.

Good for Costco, Starbucks, Brown and Cole, Frank Russell, and Red Lion Hotels!

by noemie maxwell on Fri Feb 10, 2006 at 07:10:16 PM PST

* 7 none 0 *

It's time!

The current federal administration has provided tax breaks for business with the justification that such breaks will allow businesses to prosper. The conscientious ones treat their employees with respect and provide health care coverage. The unscrupulous ones transfer their ethical obligations to the state. It's time to convince the later that they must help finance the health care needs of their employees. It's time for this legislation be enacted.

by Bill Taylor on Fri Feb 10, 2006 at 07:34:29 PM PST

* 8 none 0 *

Where to call/write

The bill is stuck in both the Senate and the House Rules Committees. The current plan is to try to get it out of the Senate Rules Committee by Tuesday so it can get to the floor. See Brian's earlier post for contact information for these members.

Health Care Action has a Web Form for contacting the governor and your legislators.

As for the House... From Washington Citizen Action:
"The Fair Share Health Care legislation has provoked considerable debate in the State House of Representatives. While a substantial majority of the Democratic Caucus is in favor of the bill, the Speaker and Caucus Leadership are hesitating. Speculation is that the leadership is holding off on support because they are protecting some members who do not want to vote on the bill in an election year, given strong business opposition. HB 2517 is now in the House Rules Committee and may stay there unless the leadership changes its current opinion."

by noemie maxwell on Fri Feb 10, 2006 at 09:38:57 PM PST

* 9 none 0 *

Thanks by eastside lib, 02/11/2006 10:14:53 AM PST (none / 0)

I agree but, long term, freedom is NOT employer

health care for the average guy and gal.

If there was a basic package that one had access to regardless of where you worked, now your employer would have one less means of control.

How many people, today, would quit working for whoever they are working for and try something else, if they weren't worried about health care?

I've been treated well twice in my life by employers - in the '86-'89 boom in Boston, and in the '96 - 2000 boom in Seattle. I was treated well because the job market was great, and if they didn't treat me well they knew I'd be gone, AND re-employed in 2 weeks.

When the job market is not great - or, sucks, like it does now - and you are lucky enough to have health care, everytime the boss says "Jump!" you better yell "How High!" louder than the guy next to you, or you will be working at 7-11 or Wal-Mart with no Health Insurance.

(and, BTW, for as bad as those companies are at treating their employees, the people they crap on are hard working people who deserve more respect than empire building bureaucrats do - who is working at 10:00 pm. if I need a quart of milk?)

Long term, take companies out health care. They aren't any good at it anyway - they should focus on selling coffee or lottery tickets or gasoline or airplanes - BUT, tax all of them fairly.

Finally, health care is the right, humane nice blah blah thing to do - but,

it is really selfish altruism - a stronger, healthier community can accomplish more - there are 300 million of us in the U.S., and 6 billion of us in the world - and we all need to be healthy to teach the kids, take care of the grannies and grandpas, fix the potholes, buld and repair the housing,... and work the 7-11 counter at 10:00 p.m.

rmm.

http://www.liemail.com/BambooGrassroots.html

by rmdSeaBos on Sat Feb 11, 2006 at 06:15:53 AM PST

* 10 none 0 *

House is the Target Now - Call, Write, Come to Oly

A determined corps of legislators in the House is leading the charge at this point, so let's support them by calling, emailing (http://www.healthcareaction.org) and if at all possible, going down to Olympia Monday at noon or on Tuesday.

40 members of the House signed a letter to Speaker Chopp urging him to bring the bill to the floor for a vote. Additional Representatives have also committed -- committed -- to vote for the bill if it is allowed to come up for a vote.

Let's let the Democratic process have a chance. Let's have a floor vote. That's the message we need to send to leaders in Olympia as broadly and as quickly as we can.

by WA4HealthCare on Sat Feb 11, 2006 at 04:22:59 PM PST

* 12 none 0 *

read the post on DFW by botch, 02/13/2006 10:06:03 AM PST (none / 0)

Thank you Senator Kohl-Welles

This is a much needed piece of legislation and I hope this effort in Washington State not only helps citizens, but helps the ball roll to other states.

Andy Wickens, AFSCME Local 1857

by awickens on Sat Feb 11, 2006 at 06:14:18 PM PST

* 13 none 0 *

Thank you for sponsoring 6356

Senator Kohl-Welles, thank you for sponsoring this legislation that is necessary for our government to provide fiscal responsibility to the taxpayers money, and in addition providing the enforcement that will level the playing field and not allow companies to cheat the system.

Something has gone very wrong in this country when you can work a full-time job and not have affordable health care for your family. It is time for our politicians to recognize the failure, and start protecting hard working people who are trying to do the right thing.

Republicans in the house argued against 2572, which would allow for small businesses to pool together for health care plans, saying that healthcare costs are so high because of our regulations. The cheap-labor conservatives who thought up Reaganomics told us to have HMO's, saying that the 'free market' would allow for cheap healthcare, but these are the same people who think that opening up the market to purchasing drugs from Canada is bad.

Their arguments against 6356 run along the same vein, by saying that it will do nothing to lower health care costs, that regulations are the culprit. That is either ignorance on their part, or outright lying.

by Brian on Sun Feb 12, 2006 at 11:42:29 AM PST

* 15 none 0 *

Senate Bill 6356

I support Senator Jeanne Kohl-Welles' bill 6356. Every citizen deserves access to healthcare in our state and all corporations should be paying their fair share. It is clear that a lot of businesses support this because it benefits everyone. In this rich country no one should be denied access to healthcare.

Rosalie Olds, King County Library System, Local 1857

by rolds on Mon Feb 13, 2006 at 11:25:29 AM PST

* 17 none 0 *

it is great by botch, 02/13/2006 11:54:48 AM PST (none / 0)

readme

by kapian001 on Fri Jun 16, 2006 at 01:02:17 AM PST

* 19 none 0 *

Fair Share Health Care: Its Time Has Come | 19 comments (19 topical)

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