The 131st Annual Meeting (November 15-19, 2003) of APHA

Abstract #73971

Steven Hendrickson, MA, Negotiated Benefits Department, United Food and Commercial Workers International Union, 1775 K Street, NW, Washington., DC 20006, 202/223-3111, shendrickson@ufcw.org

While health care in America is delivered in a variety of ways, for decades its core has been employer-based programs. The unwritten social contract says that employers pay fair wages and provide adequate benefits to workers. The key benefit provided has been health insurance. This has been particularly true of larger employers. Today, however, that social contract is unraveling, and the movement away from corporate responsibility is being led by the largest corporation, Wal-Mart. Low-wage levels, high employee premium sharing requirements, restricted eligibility criteria and employment practices that result in high turnover rates, combine to produce health insurance coverage rates of less than 40% of its workforce. Those Wal-Mart workers who are lucky enough to qualify for health insurance and elect coverage pay a significant share of their wages for this privilege.

The cost of providing health care services to Wal-Mart workers who either do not qualify for company insurance or cannot afford to pay for company insurance, is shifted to other employers and taxpayer supported charity care programs such as Medicaid. Walmart's size and labor cost advantage puts significant competitive pressure on grocery and other large retail companies. More and more, these direct competitors and corporate America in general are beginning to follow the low road example set by Wal-Mart.

Learning Objectives:

• Following this presentation. participants in this session will be better able to:
• 1)Understand and analyze the unravelling of the social contract and the movement away from corporate responsibility by large employers as exemplified by Wal-Mart.
• 2)Discuss how the cost of providing health care services to uninsured Wal-Mart and other similarly situated workers is shifted to other employers, taxpayer supported charity care and programs such as Medicaid.

Related Web page: www.ufcw.org

Presenting author's disclosure statement:
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.