Wal-Mart backs worker health plan

After years of strenuous opposition, Wal-Mart, the nation's largest private employer, announced yesterday that it backs a controversial new requirement that businesses contribute to the cost of employee health insurance.

The retailing giant's endorsement comes as the push and pull on health reform intensifies and could have broad economic and political consequences. Many business groups, displeased with the shape of legislation that has emerged so far, have begun to mobilize against President Obama's top domestic priority.

The president is countering with a series of public events - including a town hall meeting today in suburban Annandale, Va. - and private negotiations with industry players such as Wal-Mart.

Yesterday's announcement, which came after a White House meeting, brought together Wal-Mart, the liberal think tank Center for American Progress and the Service Employees International Union, which has often sparred with the retailer over the benefits it provides its 1.4 million workers.

"We are entering a critical time during which all of us who will be asked to pay for health-care reform will have to make a choice on whether to support the legislation," leaders of the three groups wrote in a letter to Obama. "This choice will require employers to consider the trade off of agreeing to a coverage mandate and additional taxes versus the promise of reduced health-care cost increases."

The agreement follows a deal struck with the pharmaceutical industry to squeeze $80 billion out of health spending over the next decade. Senate and administration aides are reportedly in talks with hospital executives in the hopes of securing a similar pledge.

Three years ago, Wal-Mart battled initiatives in several states including Maryland that would have required large employers to provide health insurance or contribute money toward workers' coverage. Yesterday, company executives said they decided to back a federal "employer mandate" if certain conditions are met: It must be part of a broad health-reform bill; it should exempt some small firms; and it must be pegged to a moderately-priced benefits package similar to the coverage Wal-Mart offers most of its workers.