Wal-Mart chief asks
for help on health care Scott says
businesses can't bear costs alone ELIZABETH WHITE Associated Press
WASHINGTON - Wal-Mart's chief executive
told America's governors on Sunday that he needs their help to make
health care more affordable and accessible for the retail giant's
1.3 million U.S. employees because the company can't do it
alone.
Lee Scott said Wal-Mart's health care costs have risen 19 percent
in each of the last three years and that it's only a matter of time
before it, along with other businesses, cannot sustain rising
costs.
"We know our benefits at Wal-Mart stores are not perfect," Scott
told the National Governors Association. "Do we want more of our
associates' kids on our health plans? Of course we do."
Wal-Mart, based in Bentonville, Ark., has been the target of
harsh criticism from watchdog groups and organized labor for what
they say are costly and inaccessible plans. Under mounting criticism
Wal-Mart last fall offered new lower-premium insurance aimed at
getting more of its work force on company plans.
The company announced last week it is expanding that effort.
Scott said the "Value Plan" of $11 a month, now available in some
areas, will be available to half of the company's employees within
the next year. He also said children of part-time Wal-Mart employees
will be eligible for health coverage as soon as the parent is and
that the company plans to increase to about 50 the number of
in-store health clinics that serve employees and the public.
He said improving the company's wellness program, encouraging
employees to eat right and take care of their bodies, is its biggest
challenge and the area where it has performed the poorest.
Scott also criticized bills filed in at least 22 states that
would force the retailer to spend more on health care, saying they
require companies to "spend an arbitrary percentage" of payroll on
benefits.
"I believe what we're seeing is a little too much politics,"
Scott said. "I think we all know what the employer mandate bills are
all about."
Republican Gov. Mark Sanford of South Carolina said Scott was
discussing the reality of soaring health care costs and said there's
work to be done so somebody "comes up with the right way of skinning
the cat and then serves as a best-practice model for a lot of other
companies and
states." |