SUB-ROSA NEWS

Some of the News
That may be True

News Item: Maryland passes law that requires Wal-Mart to increase health insurance coverage
for its employees.

Comment: Bad idea. From a macro perspective, it perpetuates reliance on the strange system
under which a person's access to health care is dependent on where the person
works. As to specifics, the law says that any shortfall below 8% of payroll must
be paid into the state's Medicaid fund. It is doubtful that all Wal-Mart employee s
who receive less than the 8% move onto the Medicaid rolls. If the law survives
judicial challenge (the law applies only to organizations with more than 10,000
employees and happens to affect only Wal-Mart), one result may be higher prices
for the Maryland consumers who do not cross the state line to make purchases.