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Michigan Retailers Association: Employer Health-Spending Mandates 'No Solution'

For Immediate Release

February 22, 2006

LANSING, Mich., Feb. 28 /PRNewswire/ -- The Michigan Retailers Association (MRA) today called legislation requiring businesses to pay a special health care payroll assessment "no solution" to the problem of health care access and affordability.

Eric Rule, MRA's director of governmental affairs, said Senate Bill 734, by forcing businesses to spend an arbitrary amount of their payroll on health care, "discourages businesses from offering higher quality coverage at a lower cost. Even worse, this legislation will do nothing to make health care more affordable and accessible."

Rule pointed that 10 state legislatures already have dealt significant setbacks to employer mandate bills because of their negative effects on businesses and jobs.

Retailers understand that every working family and business in Michigan is struggling with soaring health care costs. But, Rule said, "This state and this nation need real solutions to this daunting challenge."

He added, "Last week, Wal-Mart CEO Lee Scott showed real leadership by announcing improved benefits and calling for a new commitment between government and business to solve our nation's health care challenges. We think he's on the right track and urge other business and elected leaders to join in that commitment."

The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation's largest state trade association of general merchandise retailers.