NU Online News Service, July 1, 2:54 p.m.EDT

WASHINGTON--Wal-Mart, the nation's largest privateemployer, has told President Obama it would support health carereform legislation requiring businesses to provide employees somelevel of health insurance coverage.

The company's position on the so-called "employer mandate" wascontained in a letter signed by Mike Duke, chairman and CEO ofWal-Mart, as well as by Andrew Stern, president of the ServiceEmployees International Union, and John Podesta, chief of the Obamatransition and head of the Center for American Progress, a liberalthink tank.

In addition a statement issued by the company said, "As healthcare reform enters the next phase, we came together at this pointin the debate to add our combined voices to the momentum buildingbehind reform,We believe the time for comprehensive reform is now.The present system is not sustainable. The status quo is not anoption."

John Greene, vice president of congressional affairs for theNational Association of Health Insurers, voiced concern over theWal-Mart decision.

He said he had hoped that Wal-Mart would remain neutral oversuch a provision. Currently, most large industry trade groupsoppose such a mandate.

Mr. Greene said he is concerned about the Wal-Mart decisionbecause he fears supporters of the current legislative proposalsbeing proposed by Democrats in the House and Senate will now arguethat since the nation's biggest employer has agreed to do so,"others should follow suit."

"It gives supporters of the legislation being pushed byDemocrats in Congress additional reason to push for an employermandate in final legislation," he said.

NAHU and most employers oppose such a mandate because "it is ajob-killer, it depresses wages, and even if such a mandate were tostart with a low floor, over time it would increase," Mr. Greenesaid.

Opponents include the National Retail Federation and the U.S.Chamber of Commerce.

Wal-Mart is seeking an employer mandate that bases how much acompany pays for coverage not on the number of employees but onprofit per employee.

Such an arrangement would favor companies with many low-wageemployees, like Wal-Mart, opponents are saying.

Wal-Mart is offering support of an employer mandate depending onwhether Congress offers a guarantee to businesses that health carecosts will be contained.

The company is also endorsing the use of a trigger mechanismthat automatically would impose reductions if health care spendingrose above annual targets.

In voicing support for an employer mandate, the letter signed byMr. Duke, Mr. Stern and Mr. Podesta said, "We are for sharedresponsibility."

It added, "Not every business can make the same contributions,but everyone must make some contribution."

"We are entering a critical time during which all of us who willbe asked to pay for health care reform will have to make a choiceon whether to support the legislation," said the letter.

"This choice will require employers to consider the trade-off ofagreeing to a coverage mandate and additional taxes versus thepromise of reduced health care cost increases."

The signers said they believe a mandate must be accompanied byprovisions that will reduce health costs and dramatically improvethe value for the health care dollar.