Health Insurance Mandate Not Happening

The AFL-CIO’s attempt to begin forcing all employers to provide health insurance coverage has backfired.

A federal judge last week overturned a Maryland law aimed specifically at Wal-Mart. Under the so-called “Wal-Mart bill,” companies with more than 10,000 employees would have to spend at least 8 percent of payroll on health insurance for their employees or else pay the difference in fines. This was an attempt to drive a wedge that later could result in more widespread requirements for companies to provide health insurance.

But federal court nixed the labor federation’s grand plans, declaring that Congress actually meant it when it passed a law many years ago, known as ERISA, that protects national companies from the caprices of state insurance regulation.