Wal-Mart's good-guy stance on healthcare reform

The record, I believe, says otherwise. Until relatively recently, Wal-Mart has been viewed primarily as an opponent to reform, not an agent of change.

So what gives?

Many healthcare activists are reluctant to go on the record criticizing Wal-Mart for fear they'll discourage the company from continuing down the reform path. But privately, they say it's possible Wal-Mart is backing mandates as a way to head off more onerous legislation.

Specifically, the company may be trying to put the kibosh on a "free-rider provision" that would require employers to contribute to individual policies or government programs like Medicaid if workers have no other recourse for coverage.

About 52% of Wal-Mart employees are insured through the company, up from roughly 46% several years ago. The rest have to look elsewhere for coverage.

Often, coverage ends up being provided by taxpayers. As the nation's largest employer, Wal-Mart would perhaps have the most to lose from a free-rider provision.

Another catalyst for the company's born-again reform zeal could be a calculation that its size and income -- $13.4 billion in profit last year -- make it better positioned than rival retailers to withstand the financial burden of a mandate.

Observers made a similar case in trying to explain why Philip Morris broke from other tobacco companies to support regulation of its business by the Food and Drug Administration. Simply put, Philip Morris had less to lose from FDA oversight and more market share to protect.

Many large and medium-size retailers may find a healthcare mandate too great a challenge amid ever-narrowing profit margins. For Wal-Mart, the higher cost of insurance could be offset by an influx of new customers.

"It's hard not to imagine that there's a lot of self-interest here," said Bob Greenstein, executive director of the Center on Budget and Policy Priorities.

Still, he and others are prepared to give Wal-Mart the benefit of the doubt on the company's sincerity in its recognition that, as it says in the letter, "now is the time for action on this vital issue."

No less intriguing, Wal-Mart apparently remains open to Obama's proposal for a public insurance plan that would compete with private insurers.

"At some point, we'll have something to say about it," Rossiter said.

It's strange to think of Wal-Mart as one of the good guys in the healthcare debate. But the company is to be commended for taking a leadership position in advocating change -- something far too many businesses have been reluctant to do.

Question its motive all you like. The only thing that counts is where we end up.

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David Lazarus' column runs Wednesdays and Sundays.

Send your tips or feedback to david.lazarus@latimes.com.

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