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Health care industry

Broad Coalition Stands Against Bill Provision That Would Raise the Cost of Reform

Strategic Insights

— 2 min read

A new study released by the United Food and Commercial Workers International Union (UFCW) highlights a provision in the Senate health care reform bill that would allow corporations to avoid their fair share of health care costs. Specifically, the "Free Rider" provision would incentivize companies like Walmart to hire a largely part-time workforce, reduce workers' hours, and provide low-income employees with high-deductible company-provided insurance. This would ultimately lead to few, if any, employees being eligible for tax credits to purchase better insurance through the health insurance exchange. The findings have galvanized a broad coalition of working families and their supporters to call on Senators to fix the flawed provision.

Key Takeaways:

  • The "Free Rider" provision in the Senate health care reform bill would provide no overall health care cost savings due to its incentives for companies to hire a largely part-time workforce.
  • The provision would force low-income Walmart employees into high-deductible company-provided insurance, leaving few eligible for tax credits to purchase better insurance.
  • The "Free Rider" provision would make it unlikely for Walmart employees to be eligible for tax credits to purchase better insurance through the health insurance exchange.
  • The provision would continue Walmart's dependence on federal and state subsidies for Medicaid for its employees, encouraging even more employees to rely on Medicaid.
  • The provision would provide little or no incentive for Walmart to provide better care to its workers.
  • Organizations like the Communications Workers of America, the International Brotherhood of Teamsters, the United Auto Workers, the United Farm Workers, USAction, and the United Steelworkers have signed on to a comprehensive ad campaign to address the issue.
  • The UFCW represents more than 1.3 million workers in the retail, meatpacking, food processing, and poultry industries.
  • A strong employer responsibility provision is critical to achieving President Obama's goal of quality, affordable health care for every American.

Statistics:

  • Over 1.3 million workers are represented by the UFCW, primarily in the retail, meatpacking, food processing, and poultry industries.
  • 50% of America's job growth is expected to be in retail over the next few years.
  • 72% of Walmart employees are part-time or seasonal.
  • Only 12% of Walmart employees have access to employer-sponsored health insurance.

Sources:

  • United Food and Commercial Workers International Union. Report: "Fix the Bill: Encourage Accountability, Not Avoidance, on the Issue of Employer Responsibility."
  • "UFCW Statement on Senate Health Care Bill." United Food and Commercial Workers International Union.
  • Communications Workers of America. Press release: "CWA and UFCW Join National Ad Campaign to Fix the Senate Health Care Bill."
  • International Brotherhood of Teamsters. Press release: "Teamsters Join National Ad Campaign to Fix Senate Health Care Bill."

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