Strange Bedfellows in Healthcare Reform Debate
On June 30, Center for American Progress President and CEO John Podesta, Service Employees International Union (SEIU) President Andy Stern, and (wait for it) Wal-Mart CEO Mike Duke sent a letter to President Obama noting “reforming health care is necessary not just to improve the health of all Americans, but also to remove the burden that is crushing America’s businesses and hampering our competitiveness in the global economy.”
From the letter:
As the nation’s largest private employer, the nation’s largest union of health care workers with over one million members, and a think tank that has been a leader on health care policy, we have worked closely in support of health care reform since 2006, when we came together to help break the stalemate that had defined the health care debate for too long. Now, to move the debate forward once again, we are coming together to advance what we believe are important proposals that should be included in the current efforts to reform our nation’s health care system.
A story from the Associated Press on Tuesday notes how companies like Wal-Mart and those representing pharmaceutical, doctor, hospital, and insurance interests are changing their tunes after opposing President Clinton’s healthcare overhaul in 1993 and 1994.
Wal-Mart and its officials have given far more in political contributions over the past decade to Republicans than to Democrats. The same is true of the pharmaceutical industry and several other health-related groups.
But with better prospects for a health care bill this time — and the public favoring overhaul, many businesses and industries want to be part of the final legislation rather than left out.
“We are for an employer mandate which is fair and broad in its coverage,” Wal-Mart said in a letter to congressional and administration officials. “Any alternative to an employer mandate should not create barriers to hiring entry-level employees.”
The AP story also notes how strange it seems for Wal-Mart and SEIU to be on the same team after SEIU and many other groups long criticized Wal-Mart for its treatment of its workers:
The Wal-Mart and SEIU letter could build momentum on two fronts: Wal-Mart’s bid to improve its image regarding worker treatment, and Obama’s health care agenda.
In recent years, SEIU and other unions or liberal groups have criticized Wal-Mart for charging relatively high premiums to its employees for health insurance, and forcing them to wait up to two years for coverage.
Last May, the Federal Election Commission dismissed a complaint by labor groups that accused Wal-Mart Stores Inc. of pressuring employees to vote against Democrats in November’s election, though FEC staffers warned the case was a “close call.”
Wal-Mart lately has tried to improve employee relations, and has hired some prominent Democrats to broaden its political base. One of them, executive vice president Leslie Dach, said Wal-Mart feels the current U.S. health care system is unsustainable, and an employer insurance mandate is a cost that businesses should accept.
SEIU’s Stern praised Wal-Mart and said: “Everyone, including employers, must share responsibility in guaranteeing every working American quality, affordable insurance.”
Nancy-Ann DeParle, director of the White House Office of Health Reform, said the Wal-Mart and SEIU move was significant as Congress prepares to debate competing health plans this month. “The rising cost of health care is hurting employers and employees alike,” she said, “restricting businesses’ ability to grow and keeping workers’ wages flat.”
Wal-Mart’s endorsement of an employer-mandated system does not line up with the U.S. Chamber of Commerce, the National Federation of Independent Business and “virtually every major business trade association in Washington” The Hill wrote Tuesday.
Turning the healthcare debate into an economic issue may be the way to bring more businesses over to the idea of reform. The Center for American Progress found the United States is losing between $124 billion and $248 billion every year in lost productivity stemming from the uninsured. Georgia loses between $8.96 billion and $4.94 billion.
The letter to President Obama concluded:
With smart, targeted policies, we can create a financially-viable health care system that enables workers to change jobs without losing their care, and allows businesses to become more nimble. Health care costs will no longer stand in the way of their ability to retool for the 21st century. Focusing on health care cost savings – and demonstrating a strong commitment to achieving these savings– would make this bill a win/win for employers, individuals and America’s competitiveness.