Ohio lawmakers say business not government responsible for health care needs of workers

Ohio House Member Bob Hagan

Columbus, Ohio: Four Ohio lawmakers released information Tuesday provided by the Ohio Dept. of Job and Family Services (ODJFS) that revealed over 100,000 employees of large corporations like Wal-Mart or McDonald's doing business Ohio rely upon government-run programs like Medicaid or food stamps to make ends meet.

Democratic lawmakers Dan Stewart (D-Columbus) and Kenny Yuko (D-Richmond Heights) were joined by members of the United Food and Commercial Workers Union at the Statehouse yesterday to tackle a report by ODJFS that quantified, by employer, the number of working men and women who have to rely upon taxpayer-supported programs for their healthcare and assistance to feed their families instead of employer-provided programs and living wages.

Not present was Bob Hagan (D-Youngstown) and Jim  Hughes (R-Columbus) who will be introducing matching legislation in their respective chambers, the House and Senate.

The group said in a media release that it is "important that Ohioans should know the truth -- there is a laundry list of Ohio corporations that have the ability to provide affordable healthcare coverage and a living wage to workers, but refuse to do so. Instead, they said, corporations use the taxpayer-supported safety net so they can 'pad the salaries of their executives and increase profit margins.'"

House member Yuko said in a prepared statement that corporations not taking care of their own only adds pressure to an already tight and stressed state budget.

“Ohio has been dealing with an immensely difficult budget and these difficulties were further complicated by companies who depend on the State to pay for their employee’s health insurance," he said in an email.  "This in turn, takes money away from funding for mental health services, education and programs like Passport – services that are utilized by Ohio’s neediest citizens.”

The ODJFS report showed that more than 100,000 employees working for big corporations like Wal-Mart (15,484), McDonald's (12,939), Wendys (5,837), Kroger (5,119), Bob Evans (4,669), Burger King (3,731), Taco Bell (3,465), Subway (2,675), Giant Eagle (2,509), Goodwill (2,509) among others, are irresponsibly tapping state resources for critical social benefits like health care and food assistance.

ODJFS provided some caution in reading its report, especially as it relates to the use of Medicaid.  It noted that the complexity that surrounds decisions individuals make about their health care coverage should be factored in. The report said It is important to note that eligibility for employer-sponsored health care coverage does not preclude eligibility for Medicaid, and that there are several circumstances that could lead people who are eligible for employer coverage to apply for and receive Medicaid.  One example it gave centered on why some individuals with private insurance may pursue Medicaid coverage if it is more comprehensive than what an employer offers. Employees, it observed, may find that the cost of employer offered coverage is more than they can, or choose, to pay.  And because children are eligible for the program at higher family income levels than adults, the children of employees may be eligible for Medicaid while their parents are not.

Then again, for some employees, it said, employer coverage is simply not available.

Dan Stewart, a Columbus Democrat, said in a published report that Ohio "cannot afford to pick up the cost of corporate irresponsibility."

In the case of Wal-Mart, the largest private employer in Ohio, the fact that most of its employees are par-time helps explain why its payroll costs are low, and maybe why it has come forward to support health care insurance reform.

A spokesman for Wal-Mart who spoke with a reporter from The Columbus Dispatch and defended the company's policy, noted that 94.5 percent of its associates have health-care coverage from either the company or through a spouse or parent." Speaking from the company's headquarters in Bentonville, Ark., Greg Rossiter said the company has made "significant strides in getting our associates covered."

Rossiter said employees working at least 30 hours per week are eligible for health coverage after six months on the job, while part-time employees must wait one year. Single employees must contribute $10 from their bi-weekly pay toward insurance with family coverage at $25.

The number of employees working for 52 different corporations that were using food assistance services in August of 2009 was 99,798.

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