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Medicaid: The hidden cost of Wal Mart’s Low prices

Brandon Moseley



By Brandon Moseley
Alabama Political Reporter

MONTGOMERY—Many conservatives and free market capitalist point to Walmart as an example of what is right with the free market system. Others see the world’s biggest retailer as a pariah that offers low prices on the back of low wages.

Many of those who praise Walmart’s capitalism also decry Medicaid as part of the welfare state.

But other than lower wages and low prices, the super retailer in many states is a big driver of Medicaid cost.

According to Alabama’s Medicaid agency, “In the first seven months of 2012, an average of 40 percent of all children who applied for Medicaid (either the Medicaid for Low Income Families or the SOBRA Medicaid programs) had at least one parent who was working (earning income). This does not include children who receive Medicaid due to disability (e.g. SSI).”

These people are what is commonly known as the working poor, many of them work at Walmart, for them the company slogan, save money, live better may not be all that true.

In 2005, Walmart held a conference billed as “An In-Depth Look at Wal-Mart and Society” this a part of the company’s campaign to address criticism of the wages, healthcare benefits, and workplace policies for its 1.2 million employees. Walmart Stores Inc., had asked  nine economists to assess the retail giant’s affect on the economy.

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The company was not pleased with all that was revealed and little has changed in Walmart’s corporate culture and business operations in the US and around the globe.

Not only did they learn that “residents of a local labor market do indeed earn less following the opening of Walmart stores,” said David Neumark, an economist with the Public Policy Institute of California, who spoke at the forum, but also that Walmart added to the Medicaid roles.

Another conference participant, Michael Hicks, an economist at the Air Force Institute of Technology at Wright-Patterson Air Force Base in Dayton, Ohio, studied Walmart’s effect on government anti-poverty programs and found that Walmart increased Medicaid costs an average of $898 per worker, according to Bloomberg News.


Bloomberg also said that Hicks found that a 1 percent increase in Walmart’s market share in a state is accompanied by a 1.5 percent increase in Medicaid spending. Walmart insures fewer than half its employees, many of whom cannot afford to pay for their own health insurance.

Hicks found that government aid to needy families decreased by 3.3 percent with every 1 percent increase in Walmart’s market share.

During the same period, the “Montgomery Advertiser” reported about Walmart, “Data from the Alabama Medicaid Agency showing that Walmart topped the list of companies with the most employees with children on Medicaid. The retailer accounted for some 3,864 enrollees who were costing the state between $5.8 million and $8.2 million a year.”

While Walmart has contributed to growth in the Medicaid cost in Alabama it has also received substantial subsidies from local governments. While Alabama has no central database to keep track of tax breaks and cash inducements to business, Good Jobs First supplies this list of some Walmart around the state.

These 10 deals are worth a total of about $49.8 million in Alabama. They include the following:

Wal-Mart subsidies in the following cities

Birmingham (Crestwood Blvd), AL : $11 million

Birmingham (Parkway E), AL : $10 million

Birmingham (Trussville), AL : $3 million

Brundidge, AL : $5 million

Cullman, AL : more than $12 million

Gardendale, AL : $4 million

Leeds, AL : more than $500,000

Mobile, AL : $992,000

Opelika, AL : $2.2 million

Pell City, AL : $1.1 million

These cash and tax incentives paid with citizens tax dollars, are repeated over again in many states. But some state legislators are starting to weight the high cost of low price.

Recent studies showed that in early 2011, Walmart led all Missouri employers with 10,028 employees and their dependents enrolled in Missouri’s Medicaid program.  In FY09, Walmart led all employers in Massachusetts with 10,171 employees and their dependents using publicly subsidized healthcare. And in 2011 Walmart topped the list of Medicaid employers with Medicaid enrollees in Connecticut.

January,  2012, Good Jobs First found that “taxpayers are forced to provide healthcare for Walmart’s Associates.” Hundreds of thousands of Associates and their family members qualify for publicly-funded health insurance. According to data compiled by Good Jobs First, in 21 of 23 states which have disclosed information, Walmart has the largest number of employees on the public rolls of any employer.

In 2012 Walmart stopped offering health insurance to part-time employees (working less than 24 hours per week). But of the many who do qualify for the company plan only a few can actually afford what the company offers.

The 2012 Associate Benefits Book, distributed to Walmart employees, advertises Medicaid and CHIP premium assistance programs for employees who eligible for Walmart’s health insurance but are “unable to afford the premiums.” The handbook also lists contact information for assistance programs by state.

Of course, Walmart is not the only company whose employees receive Medicaid benefits but studies show they may be the biggest.

Brandon Moseley is a senior reporter with eight and a half years at Alabama Political Reporter. You can email him at [email protected] or follow him on Facebook. Brandon is a native of Moody, Alabama, a graduate of Auburn University, and a seventh generation Alabamian.



Alabama DHR announces grants providing temporary assistance for stabilizing child care






The Alabama Department of Human Resources announced on Friday a new grant program to provide assistance to licensed child care providers in the wake of the COVID-19 pandemic.

The Temporary Assistance for Stabilizing Child Care, or TASCC, grant program’s purpose is to stabilize the number of child care providers that are open and providing services, as well as encourage providers to reopen.

DHR is now accepting applications for TASCC grants. The deadline to apply is August 7, 2020. The total grant amounts will be based on each provider’s daytime licensed capacity with a base rate of $300 per child.

To be eligible for a grant, licensed providers must be open or plan to reopen no later than August 17, 2020, and continue to remain open for a period of one year from the date of receiving the grant award. As of this week, 1,306 of Alabama’s 2,448 child care facilities were open in the state.

“We are proud to offer this program as a support and an incentive to an important sector of our economy. These grants will give the support many providers need to reopen and assist those already open,” said Alabama DHR Commissioner Nancy Buckner. “This program is going to be vital for our child care numbers to reach the level required to provide adequate services as parents return to work. We have already made significant strides in reopening facilities over the past several months; in April only 14 percent were open while now 53 percent are open.”

These grants will provide support for paying employees, purchasing classroom materials, providing meals, purchasing cleaning supplies, providing tuition relief for families, as well as other facility expenses.

DHR recommends child care providers read all guidance prior to submitting a TASCC application. Child care providers need to complete the application to determine the estimated grant amount. Grant applications will be processed as they are received and grants awarded once approved.

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An online fillable application is available for the TASCC grant at The application must include an Alabama STAARS Vendor Code in order to be processed. For questions regarding the application, please email DHR at [email protected].


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Gov. Ivey awards grant for new system to aid child abuse victims





Gov. Kay Ivey delivers the 2019 state of the state address. (CHIP BROWNLEE/APR)

Gov. Kay Ivey has awarded a $375,000 grant to establish a statewide network that will ensure that victims of child abuse receive immediate and professional medical care and other assistance.

The grant will enable the Children’s of Alabama and the University of Alabama at Birmingham Department of Pediatrics to collaborate with the Alabama Network of Children Advocacy Centers in creating the Child Abuse Medical System.

 “Child abuse is a horrendous crime that robs children of their youth and can negatively affect their future if victims do not receive the proper professional assistance,” Ivey said. “I am thankful for this network that will ensure children get the professional attention they need and deserve.”

The medical system will be a coordinated statewide resource that includes pediatric physicians, nurse practitioners, nurses and other medical professionals along with specialized sexual assault nurse examiners.

The Alabama Department of Economic and Community Affairs is administering the grant.

“ADECA is pleased to join with Gov. Ivey and those dedicated people who are part of the Child Abuse Medical System to support these children at a time they need it most,” said ADECA Director Kenneth Boswell.

Ivey notified Tom Shufflebarger, CEO of Children’s of Alabama, that the grant had been approved.

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ADECA manages a range of programs that support law enforcement, economic development, recreation, energy conservation and water resource management.

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U.S. Attorney Jay Town announces resignation

Eddie Burkhalter



U.S. Attorney Jay Town announced his resignation Friday. (WHNT)

Jay Town, the U.S. attorney for the Northern District of Alabama, on Friday announced his resignation and plans to work at a Huntsville defense contractor and cybersecurity solutions company. 

Town’s resignation will be effective Wednesday, July 15, according to a press release. 

“After much thoughtful prayer and great personal consideration, I have made the decision to resign as the United States Attorney of the Northern District of Alabama.  I have tendered my resignation to Attorney General William Barr. General Barr expressed his gratitude for my service to the Department of Justice and to the Northern District and, despite having hoped I would continue in my role, understood and respected my decision,” Town said in a statement. 

“I am extremely grateful to President Trump, to whom I also tendered a letter, for his special trust and confidence in me to serve as the U.S. Attorney. It was an honor to be a part of this Administration with an unrivaled class of United States Attorneys from around the nation.  I will forever remain thankful to those who supported my nomination and my tenure as the U.S. Attorney,” Town continued.

Town said his job with the unnamed Huntsville defense contractor and cybersecurity solutions company is to begin later this year, and the company is to announce his position “in a few weeks.” 

“The Attorney General of the United States will announce my replacement in the coming days or weeks,” Town said in the release.  

Town has served in his position since confirmation by the U.S. Senate in August 2017. Prior to that appointment, Town was a prosecutor in the Madison County District Attorney’s office from 2005 until 2017.

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Attorney General William Barr in a statement Friday offered gratitude for Town’s three years of service. 

“Jay’s leadership in his District has been immense.  His contributions to the Department of Justice have been extensive, especially his work on the China Initiative and most recently as a Working Group Chair on the President’s Commission on Law Enforcement and the Administration of Justice. I appreciate his service to our nation and to the Justice Department, and I wish him the very best,” Barr said in a statement.

The U.S. Justice Department in April 2019 notified Gov. Kay Ivey that the department’s lengthy investigation into the state’s prisons for men found systemic problems of violence, sexual assaults, drugs and corruption which are likely violations of the inmates’ Constitutional protections from cruel and unusual punishment. 


Town’s office leads the discussions between the U.S Department of Justice and the state on the prison conditions. 

Problems with violence, deaths and drugs in Alabama’s overcrowded, understaffed prisons have not markedly improved in the year’s since the U.S. Department of Justice released its report.

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Alabama’s daily COVID-19 deaths second highest since start of pandemic

In the past two weeks the state recorded 190 coronavirus deaths, a 38 percent increase from the previous two weeks.

Eddie Burkhalter




Alabama saw 35 deaths from COVID-19 on Friday, the second highest daily number of deaths since the pandemic began. 

The previous record daily high was May 12, when the state recorded 37 coronavirus deaths. Prior to that, the high was on April 22, when Alabama saw 35 deaths from the virus. In the past two weeks the state recorded 190 coronavirus deaths, a 38 percent increase from the previous two weeks.

While cases have been surging since mid-June, deaths have largely remained stable. Deaths are considered a lagging indicator, meaning that it takes longer for deaths to begin rising after cases and hospitalizations begin rising.

“The fact that we’re seeing these sharp increases and hospitalization in cases over the past week or two is really concerning,” said UAB expert Dr. Jodie Dionne-Odom earlier this week. “And we expect, given the lag that we know there is between cases and hospitalization — about a two-week lag, and a three-week lag between cases and deaths — that we’re on a part of the curve that we just don’t want to be on in our state.”

It’s unclear whether this new rise in deaths will become a trend, or whether it is a one-day anomaly, but the 14-day average of deaths per day is now nearly as high as the previous peak on May 14 — weeks after the state hit its first “peak” in cases per day in late April. The previous high of the 14-day average of deaths per day was 16 on May 14. The average is now at 14 deaths per day, on average.

The uptick in deaths comes after days of record-high new daily COVID-19 cases and hospitalizations. The state added 1,304 new COVID-19 cases Friday, down from Thursday’s record-high of 2,164, but the trend of rising daily cases has continued largely unabated since early June. 

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The 14-day average of daily tests was at an all-time high Friday, at 8,125, which was 308 more tests than the previous high, set Wednesday. The percent of tests that were positive also increased, however, so the new cases can’t be attributed solely to more testing. 


The 14-day average of the percent positivity was 14.22 on Friday. Excluding Thursday’s figure, because the Alabama Department of Public Health didn’t publish total tests administered on Thursday, which threw  off percent positive figures, Friday’s 14-day average was the highest it’s been since the beginning of the pandemic. 

There were a few higher 14-day average percent positivity days in April, but those numbers were skewed as well, because ADPH wasn’t able to collect all testing data from commercial labs during that time period. 

Along with surging new cases, the number of COVID-19 patients hospitalized on Thursday was higher than it’s been since the beginning of the pandemic. On Thursday 1,125 coronavirus patients were being treated in state hospitals, which was the fifth straight day of record current hospitalizations. 

UAB Hospital’s COVID-19 Intensive care units were nearing their existing capacity earlier this week. The hospital has both a COVID ICU and a COVID acute care unit designated to keep patients separated from those who don’t have the virus, but it has more space in other non-COVID units should it need to add additional bed space.

Hospitals in Madison County this week are also seeing a surge of COVID-19 patients. Paul Finley, the mayor of the city of Madison, told reporters Wednesday that local hospitals were reporting record numbers.

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