Fair Share Health Care Act
Encyclopedia
Maryland Senate Bill 790, known as the Fair Share Health Care Act, also nicknamed the "Wal-Mart Bill", was a legislative act passed in the state of Maryland
in 2005. The act would have required for-profit employers with more than 10,000 workers in the state of Maryland to spend at least 8% of their payroll on employee health benefits or make a contribution to the state's insurance program for the poor. Non-profit employers were required to do the same, but with a lower, 6% benchmark.
The Maryland legislature initially passed the bill on April 5, 2005. Though its supporters contended that it did not single out Wal-Mart
, Wal-Mart was the only private, for-profit employer in the state that would have been affected.
The bill was vetoed by then-Governor Robert L. Ehrlich On January 12, 2006, the Senate decided to override Ehrlich's veto, thereby passing the act into law.
On July 18, 2006, federal judge J. Frederick Motz
struck down the law as preempted by ERISA. On January 17, 2007, the United States Court of Appeals for the Fourth Circuit upheld the decision.
In 2006, such a bill was vetoed by the governor of Colorado
.
In the same year, a version of the bill that would have required companies with 5,000 or more employees to spend 9% of their payroll on health care benefits was defeated
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
in 2005. The act would have required for-profit employers with more than 10,000 workers in the state of Maryland to spend at least 8% of their payroll on employee health benefits or make a contribution to the state's insurance program for the poor. Non-profit employers were required to do the same, but with a lower, 6% benchmark.
The Maryland legislature initially passed the bill on April 5, 2005. Though its supporters contended that it did not single out Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
, Wal-Mart was the only private, for-profit employer in the state that would have been affected.
The bill was vetoed by then-Governor Robert L. Ehrlich On January 12, 2006, the Senate decided to override Ehrlich's veto, thereby passing the act into law.
On July 18, 2006, federal judge J. Frederick Motz
J. Frederick Motz
J. Frederick Motz is a United States federal judge.Born in Baltimore, Maryland, Motz received an A.B. from Wesleyan University in 1964 and an LL.B. from the University of Virginia School of Law in 1967. He was a law clerk, Hon. Harrison L. Winter, U.S. Court of Appeals, Fourth Circuit from 1967 to...
struck down the law as preempted by ERISA. On January 17, 2007, the United States Court of Appeals for the Fourth Circuit upheld the decision.
Similar measures
While the Maryland bill drew the most national media attention, similar measures were considered in other states but also failed.In 2006, such a bill was vetoed by the governor of Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
.
In the same year, a version of the bill that would have required companies with 5,000 or more employees to spend 9% of their payroll on health care benefits was defeated
External links
- Details of the Fair Share Health Care Act. Maryland General Assembly.