Large companies shirk burden of health costs

Yawu Miller

Massachusetts taxpayers spend more than $213 million to pay health care costs large employers refuse to pay, according to a report released last week by the state’s Department of Health and Human Services.

Retail giant Walmart tops the list of firms with more than 50 employees who don’t receive health benefits with 2,966 uninsured employees costing Massachusetts taxpayers $7.9 million in payments into the state’s uncompensated care pool.

Filling out the top five are the Stop & Shop supermarket chain, fast food giant McDonalds, the Unicco building maintenance company and the Shaws/Star Market chain.

“This is huge,” said Health Care for All Executive Director John McDonough. “This is a huge taxpayer burden to pay for employee health benefits.”

The state Senate is currently considering a bill that would require companies either provide health care coverage to their employees or pay directly into the state’s uncompensated care pool. McDonough says the state’s report low-balls the actual cost to tax payers by not reporting on firms that have fewer than 50 employees.

The actual cost to taxpayers, he says, could be closer to $400 million.

“We think this report bolsters significantly the argument for why the state should pass the law requiring all employers to pay a minimum amount for health care,” he said.

According to Health and Human Services Secretary Timothy Murphy, 97 percent of employers in the state offer some form of subsidized health care for full time workers. But part time workers usually receive no benefits.

Last week, McDonough joined activists with the Service Employees International Local 615 to protest the janitorial firm Unicco’s refusal to pay employee health benefits for its employees, which, according to the state’s report, cost tax payers $3.9 million in 2005.

“The costs come back to us one way or another,” said state Rep. Liz Malia, during a press conference at Local 615’s office. “There is no issue more important than expanding access to health care.”

Workers with Local 615 were part of a state-wide effort through which Health Care for All collected 130,000 signatures to put health care reform on the ballot. If the Legislature fails to pass a reform bill, the organization plans to use the ballot to push through reform.

After the press conference, Local 615 members and other activists marched to the office of Unicco on Tremont Street and presented staff there with a symbolic bill for the $3.9 million the state estimates the firm cost it in health care costs.