Thursday, January 12, 2006

Wal-Mart Medical Insurance Bill ERISA Preemption Analysis

Paul M. Secunda of Workplace Prof Blog gives this analysis of whether ERISA preempts the Wal-Mart Medical Insurance Bill now before the Maryland General Assembly:
My first impression conclusion here is probably the same conclusion I came to [in an earlier post on bills pending in Massachusetts and Illinois which would require employers to foot the bill for employee health care through a "pay-or-play system."]: it all depends on whether Wal-Mart self-insures its health plans. If it does, the deemer clause should lead to ERISA preemption of the state law; if not (that is, it insures its health plans through another company), it should be saved from ERISA preemption as a law that regulates insurance under ERISA's Savings Clause.
As of this evening, one house of the General Assembly has overriden Gov. Ehrlich's veto of the bill and the override measure is moving to the other house.

Hat Tip to the WSJ's Law Blog.


Whoops!! I should have checked the wire services before I finished my post. Even before I finished the post, the Maryland General Assembly overroad Gov. Ehrlich's veto of the Wal-Mart medical insurance tax bill.

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