President Barack Obama’s pursuit of a healthcare overhaul has found an unlikely ally in Walmart.

Traditionally Republican leaning, the retailer giant took the industry by surprise when it officially signed a letter expressing its support for the mandatory health insurance proposed by Obama.

The letter endorsed Obama’s bid requiring large employers to secure health insurance to its workers and was signed collectively by Walmart Chief Executive Mike Duke, Andy Stern, president of Service Employees International Union (SEIU), and John Podesta, CEO of the Center for American Progress.

Walmart expressed its support for an employer mandate that embraces a wide coverage. The company views their support of the health insurance reform as a testament of their commitment to control healthcare cost without taking their employees’ health needs for granted.

The proposal, if implemented, aims to cover almost 50 million of uninsured American workers.

Walmart’s endorsement could hurt opponents of Obama’s ambitious bid, which had relied on amassing numbers for a united front to prevent its passage when Congress resumes on the issue.

Some erstwhile opponents of the proposal warmed up to some of its provisions and expressed support for key parts. A large group that represents pharmaceutical companies indicated willingness to reduce costs of prescription drugs for senior citizens by $80 billion in 10 years’ time. Groups representing medical practitioners and hospitals have also committed to a reduction in healthcare costs.

This is a breakthrough development in the struggle to reform America’s healthcare system because these recent supporters have staunchly opposed similar moves during the Clinton administration.

Observers note that need and American public opinion are paving the way for this major legislation to pull through.

In Walmart’s case, the endorsement letter it co-signed with SEIU benefits both sides in separate ways: it improves Walmart’s labor relations image and it furthers the interest of workers for health insurance.

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This entry was posted on Tuesday, November 17th, 2009 at 1:25 pm and is filed under Corporate News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.