U.S. Chamber Urges Maryland Lawmakers to Uphold Governor's Veto of Fair Share Health Care Fund Act

Governor's Veto of Fair Share Health Care Fund Act

WASHINGTON, D.C.—The United States Chamber of Commerce today urged the Maryland state legislature to sustain Governor Robert Ehrlich's veto of the Fair Share Health Care Fund Act, a bill that would set a dangerous precedent for state governments' ability to dictate how companies can operate.

"When Governor Ehrlich vetoed this legislation, he acted in the best interests of his constituents and helped cement Maryland's stature as a good place to do business," said Bruce Josten, Chamber executive vice president for government affairs. "Overturning his veto would severely damage the prospects for business expansion and job growth in the state."

The Fair Share Health Care Fund Act, passed by the state legislature in April 2005, would require companies operating in Maryland that employ more than 10,000 people to spend at least 8 percent of their payroll on health care benefits or place the money directly into the state's health care program for low-income individuals. Wal-Mart is the only company currently operating in Maryland that meets the criteria for the proposed law.

The bill, similar versions of which have been introduced in 29 other states, would actually penalize large employers like Wal-Mart and threaten both job creation and health benefits in those states. Such mandates represent a "one-size-fits-all" approach to health insurance and do very little, if anything, to control the skyrocketing costs of coverage or improve the quality of care. Instead, they drive up existing health care costs for employers who are already struggling to provide workers with affordable health care coverage. Added mandates mean less money for job creation.

"States should be exploring ways to lower health care costs and help small business owners gain access to affordable, quality care rather than wasting time on half measures like this that ignore the reality of the health care crisis in this country," said Josten.

In addition, forcing large employers to pay for a specified amount of health benefits may violate federal law under the Employment Retirement Income Security Act (ERISA), according to the Chamber.

The United States Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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