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Wal-Mart Mulls Challenge as Maryland Passes Health Law

HeadlineJan 13, 2006

In Maryland, state legislators passed a law Thursday that would require retail giant Wal-Mart to increase health care spending for its employees. The measure is expected to be replicated in other states. The measure overrode a gubernatorial veto and followed an intense lobbying battle between Wal-Mart and labor groups. Under the new law, employers with 100,000 or more workers must devote at least 8 percent of their payrolls to health insurance, or pay the difference into a state Medicaid fund. A Wal-Mart spokesperson told the New York Times the company is considering bringing a lawsuit to challenge the law. Democratic State Senator Gloria Lawlah, who sponsored the bill, said: “This is not a Wal-Mart bill, it’s a Medicaid bill.” This bill says to the conglomerates, ’Don’t dump the employees that you refuse to insure into our Medicaid systems.’ ”

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