Big retailers face health insurance proposal

BY CHAU LAM AND ZACHARY DOWDY

STAFF WRITERS



Suffolk legislators tomorrow will begin considering a novel law aimed at forcing large retailers such as Wal-Mart to provide higher quality health insurance for their workers to ease the financial burden borne by taxpayers.



The bill, introduced last week by Minority Leader William Lindsay (D-Holbrook) and backed by Majority Leader Peter O'Leary (R-Moriches), resembles proposals nationwide.



Lawmakers say the bill, if passed, would prevent taxpayers from subsidizing coverage for some of the "working poor" who rely on government health programs such as Medicaid.



"The box stores come to our area and compete against a lot of local mom-and-pop stores and chain stores that have good health care benefits," Lindsay said. "This bill is trying to level the playing field a little bit."



Today, the New York City Council is expected to adopt the Health Care Security Act with enough votes to override a possible veto by Mayor Michael Bloomberg. If that's the case, New York would become the first municipality in the country to impose such a law.



The Suffolk legislation, which will be considered tomorrow by the Ways and Means Committee, does not name specific retailers, setting revenue and square footage criteria for businesses.



But sponsors said it would affect such large retailers as Wal-Mart, Walgreens, Kmart, CVS, Target and BJ's Wholesale Club.



Mia Masten, a spokeswoman for Bentonville, Ark.-based Wal-Mart, which has five stores in Suffolk County, said the company offers health benefits to its workers. "These benefits are competitive with other retailers," Masten said. One of the plans Wal-Mart offers costs an employee less than $155 a month in a premium for family coverage, with a deductible of $1,000.



"Employers that pay a competitive wage and pay excellent health benefits shouldn't be subject to government-run health care," said spokeswoman Tiffani Bruce of Walgreens, which has seven Suffolk stores. "We think that we do that." A CVS spokesman declined to comment. Target, BJs and Kmart did not return calls.



The Suffolk bill would require large retail stores to set aside a minimum of $3 per hour for every hour an employee works to cover health insurance costs. The bill bars retailers from deducting that money from wages, salaries or other compensation.



The proposal targets grocery stores that are 25,000 square feet or larger and stores that earned more than a $1 billion in revenue and 20 percent of the revenue come from selling groceries. Stores that are 75,000 square feet or larger where 5 percent of the space is used to sell groceries are singled out.



Given its bipartisan support, the bill is likely to pass the Suffolk Legislature. County Executive Steve Levy said he is conducting a review to determine whether the county could legally implement such a measure. But he said the "the spirit of the legislation is noble." A spokesman said the Nassau Legislature is not considering a similar law.



The city bill requires grocery retailers with more than 35 employees to contribute to their workers' health care at "the prevailing industry level" -- currently about $2.50 per hour or $5,000 per year for full-time employees.



Yesterday, Wal-Mart workers filed into and out of the Islandia store and spoke about their own health woes -- that they can't afford the plans provided by their employer. Fearing reprisal from Wal-Mart, they agreed to be interviewed provided their names were not published.



"Ninety-five percent of us don't have it," said one 21-year-old man who has worked for the company for more than three years, adding that he has been with the Islandia store since it opened. "And the other five percent are managers," a 19-year-old employee chimed in.



The men said the most desirable health plan offered by the company would cost them $136 per two-week pay period, far too much to pay on their $8 an hour wages, they said. Good thing, said the 21-year-old employee, his girlfriend has insurance to support their child. "But I don't have anything for myself," he said, adding that his salary is among the highest in the store, where most employees' wages hover at $7.50 per hour.



Staff writers Lauren Weber and Hilary Russ contributed to this story.