Maryland Lawmakers Set To Overturn Veto Of 'Fair Share' Bill

ERISA, she explained, was enacted as a measure to ensure that no state laws would be passed allowing insurance companies to “pad their pockets” at the expense of employees. Fair Share legislation, she said, avoids conflicts with federal law by avoiding insurance issues entirely.

“The Fair Share legislation does not mandate anything to the insurance industry,” Nelson said, noting that the bill requires only that employers spend money rather than dictating where it goes. How employers spend the money, whether through purchasing coverage, encouraging employees to open Health Savings Accounts, or simply putting it into the state fund, “is up to them,” she added.

In fact, Nelson said she saw the discussion of a legal challenge to the Maryland Fair Share legislation as a positive, at least in its timing. “The first thing the opposition wants to do is throw a lawsuit at you,” once they believe they will be defeated, she said, adding that she sees the governor’s mention of such a challenge, “as sort of a good sign.”

The vote to overturn Gov. Ehrlich’s veto is likely only the prelude to what will be occurring in statehouses across the country. According to Americans for Health Care, more than 30 states are expected to introduce Fair Share legislation during their legislative sessions this year.

Opponents of the Fair Share legislation argue that the concept does little actually to help control health care costs and does not offer a real solution to the issue of increasing the number of Americans covered by health insurance.

James Klein, president of the American Benefits Council, has said that the group “finds these ‘fair share health care’ initiatives neither fair nor do they share the work of reform needed to extend high quality, efficiently priced health coverage to the 46 million Americans who are uninsured.”

“We believe that employers, government and individuals all have a role to play in addressing the cost and quality of our health care system,” Klein added. “That is fair. Genuine systemic changes in our health care system will only occur when all of us are working together to achieve improvements.”

The U.S. Chamber of Commerce also has opposed Fair Share legislation, warning that states that enact such legislation, including Maryland, will be hurting their own image within the business community.

“When Governor Ehrlich vetoed this legislation, he acted in the best interests of his constituents and helped cement Maryland’s stature as a good place to do business,” said Bruce Josten, executive vice president for government affairs for the Chamber. “Overturning his veto would severely damage the prospects for business expansion and job growth in the state.”