The nation's largest retailer has joined with the Service
Employees International Union and the liberal Center for American
Progress to support an employer mandate. In a letter to President
Obama, Wal-Mart CEO Mike Duke, along with Andy Stern of the SEIU
and John Podesta of CAP, write "We are entering a critical time
during which all of us who will be asked to pay for health care
reform will have to make a choice on whether to support the
legislation. This choice will require employers to consider
the trade off of agreeing to a coverage mandate and additional
taxes versus the promise of reduced health care cost increases."
The letter later said, "We are for an employer mandate which is
fair and broad in its coverage, but any alternative to an
employer mandate should not create barriers to hiring entry level
employees. We look forward to working with the Administration and
Congress to develop a requirement that is both sensible and
equitable."
This news isn't all that surprising. Wal-Mart has in the past
supported initiatives such as raising the minimum wage, which
hurt their competitors and allowed them to curry favor with their
union critics. But this letter also reinforces why Obama's
declaration that people can keep their insurance coverage if they
like it is just hot air. Under a mandate, many employers would
just pay a tax and dump their workers on to a government
exchange, thus meaning a lot of people --likely in the tens of
millions -- will lose their current coverage.
That said, the letter will help give President Obama and
Democrats cover to push the employer mandate idea, and respond to
criticism from the Chamber of Commerce, which has argued that a
mandate would cost jobs and reduce salaries.