Big employers exploiting Medi-Cal?

June 12, 2013

Supporters of a legislative plan called “the Walmart bill” demonstrated at the state capitol Wednesday, hoping to punish big employers for paying wages so low that workers are forced onto Medi-Cal rolls. (SacBee)

Heavily backed by labor unions, the bill, AB 880, is being lobbied vigorously with an accompanying marketing and advertising campaign.

One supporter, Steve Smith of the California Labor Federation, said “some large employers are trying to game the system, and this is something that the Legislature, I think, has a responsibility to address.”

The proposal would mostly affect large “box” store operators, restaurant chains, and janitorial firms. It would levy financial penalties to employers of 500 or more people if workers qualify for the state-financed medical coverage.

Bill Dombrowski, president of the California Retailers Association, wrote in a prepared statement, “AB 880 has overwhelming opposition from nearly every industry in this state. This is one of the worst bills introduced and it will have devastating impacts on jobs, our economy and the implementation of Obamacare.”