The bill, HB 98 , creates a Fair Share Health Care Fund to be used to supplement Medicaid costs. Each year, effective January 1, 2007, companies with 10,000 employees or more who do not spend at least 8% of total wage costs on employee health insurance must pay to the fund the difference between what it does spend and 8% of wage costs.
Kentucky Governor, Ernie Fletcher, opposes the bill, according to BNA. Also the Kentucky Cabinet for Health and Family Services issued a comment saying it fears companies may reduce their payrolls to meet the bill’s requirements, forcing displaced workers to apply for Medicaid coverage, BNA said.
Earlier this month, a similar bill was introduced in the West Virginia legislature (See West VirginiaLegislators Ponder ‘Wal-Mart Bill’). The day following, Maryland’s Senate voted to enact the nation’s first Fair Share Health Care Act, overriding the governor’s veto of the bill (See Veto of ‘Wal-Mart Bill’ Overridden in MD Senate).