Las Vegas unions seek insurance mandate

Michelle Swafford

Monday, Jan. 26, 2004 | 10:56 a.m.

A local labor coalition called Saturday for state government to mandate that all employers provide health insurance coverage for their employees, easing the burden on taxpayers and the county-funded University Medical Center.

About 80 members of the Raising the Standard of Living Coalition, which is made up of three local labor unions, rallied in front of University Medical Center because it treats many of the uninsured people in the Las Vegas Valley.

Teamsters Local 631, Operative Plasterers & Cement Masons' International Association Local 797 and Plumbers & Pipefitters Local 525 formed the coalition in October to support measures that will raise the valley's standard of living. Representatives of other unions also rallied Saturday in support of mandated employer-health plans.

"Each time companies fail to provide health insurance, that puts extra strain on taxpayers and our society," said John Wilson, a consultant for the coalition with Oregon-based Positive Persuasion Industries. "We don't want a health program run by the federal government. We want it to be private enterprise. We think we'd be a lot better off mandating the health coverage."

The coalition said it wants Nevada legislators to approve a bill similar to one passed in 2003 in California. The California bill requires all companies to offer health benefits to workers and their dependents by 2007.

California's Health Insurance Act of 2003 was signed into law by former Gov. Gray Davis, but will appear on a November ballot for the people to decide if the law should be repealed. The California Chamber of Commerce has estimated that the law could cost $7 billion annually and increase layoffs as well as drive more businesses out of California and into more employer-friendly states.

Mandated health insurance would lessen costs for UMC and for companies currently providing health benefits. Because of lack of insurance coverage for many who need it, the rising cost of medical care is passed on to those who do have insurance, Wilson said.

He said employers are required to pay workers' compensation insurance and should also be required to pay health insurance.

Wilson said he was unaware of the efforts to repeal the California law, but said, "I'll be surprised if people vote it down because it's a concern for a lot of people."

Although the union group is not targeting specific companies and industries, Wal-Mart was cited as an example of an employer that could do a better job of providing health coverage.

Wilson said Wal-Mart often provides insurance to its employees with high deductibles and co-pays and encourages its workers to use county-funded health services.

Christi Gallagher, Wal-Mart spokeswoman, said Wilson's claims were false. About 50 percent of its employees are on a Wal-Mart-provided health plan and another 40 percent are covered under a family member's health plan. Wal-Mart offers all of its employees health benefits after they meet their eligibility requirements and pays two-thirds of the health plan costs.

"We have to be a desirable employer," Gallagher said. "With our growth potential and 1.3 million employees in the United States, we have to be competitive with our wages and benefits. Because of our size we're often a target of special interests, including the unions who have their own agendas."

Shell Sherman, executive administrator of the RSL coalition, said, "Somewhere along the line someone's got to stand up and fight for the community, not just union members."

Small business owners, who say it's often cost prohibitive to provide health insurance for their employees, would not be exempt from the mandate proposed by the coalition. The group plans to meet with Nevada legislators to discuss introducing a bill.

"They certainly can't afford not to pay it," Wilson said. "They can't afford for key employees to get sick."