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California Employers may need to Fork out more on Health Benefits

by Medindia Content Team on February 3, 2006 at 7:34 PM
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California Employers may need to Fork out more on Health Benefits

California: Big time employers in California will need to cough up more towards health benefits for their workers or else spruce up the state's medical insurance program for the needy, according to the recent communiqué. A bill portraying these sentiments is slated for introduction in the parliament.

Wal-Mart, the retail giant, was recently subjected to a similar legislation passed in Maryland and now it is the turn of the California laws intended for employers with a work force of 10,000 or more, to spend at least 8% of wages on health benefits. In the event of not complying with such a decree, the company will be required to compensate Medi-cal with the difference.

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According to Sen. Carole Migden, proponent of the bill, this move would prove a protection cover for employees whilst also ensuring that the employer discharges his responsibility. Like most other bills, this too faces enough opposition. Wal-Mart has labeled this as a mediated attack against a well known networked retailer with a collective workforce of more than 1.3 million. Kelly Hobbs, a spokesperson for the retailer, feels that this is a politically motivated conspired move by the union leaders to stagger Wal-Marts growth.

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