Wednesday, March 15, 2006

State Watch

Minnesota Senate Committee Passes Bill Mandating Large Companies Provide More to Worker Health Insurance

      The Minnesota Senate Jobs, Energy and Community Development Committee on Monday approved by voice vote a bill that would require the state's largest employers to pay health insurance costs for their workers, the Minneapolis Star Tribune reports. A similar proposal failed in a House committee last week. The Senate bill would require that Minnesota companies with 10,000 or more employees spend 8% of the wages for lower-paid workers on health benefits or pay that amount into a state fund. An amendment that would require Minnesota, which employs 10,000 workers, to meet the same standards also is being considered. State Sen. Becky Lourey (D), who is sponsoring the legislation, said large corporations that do not provide enough health care for their workers force taxpayers and other "responsible" companies to cover the tab. Rick Varco, director of communications and research for the Service Employees International Union Local 113, said, "This bill is not the solution to the health care crisis. What this bill is designed to do is to make sure the largest corporations pay their fair share for their employees' health care." Business groups, such as the Minnesota Business Partnership, the Minnesota Chamber of Commerce and the Minnesota Retail Federation, said the legislation does not address the real needs of working Minnesota residents with insufficient health care. The groups say that the bill could encourage some businesses not to expand for fear of being included in the 10,000 worker category (Brunswick, Minneapolis Star Tribune, 3/13).