Lynn Kappelman Quoted in The Wall Street Journal
“Retailers Face Particular Challenges From Health-Care Law”

Lynn Kappelman was quoted in the April 16, 2010 Wall Street Journal article, "Retailers Face Particular Challenges From Health-Care Law." The article discussed the particular challenges that retailers face from the health care reform law. According to the article, the retail industry is largely comprised of low-wage, part-time workers, with a large turnover, which makes compliance with the new mandates difficult in broad strokes. The article also noted that retailers are meeting with health care consultants, insurers, lawyers and their own benefits departments to try to get a handle on the complexities of what they face.

The article explained that retail is also a seasonal industry, with many stores increasing staff during the winter holiday season. Hiring can start as early as October, with staff kept on through January. According to the article, the new health care law requires only a 90 day waiting period before an employee is eligible for health care coverage, as opposed to the traditional six months or even a year, so there may be questions raised about this measure and what defines a seasonal employee. Lynn, partner and head of the retail industry group at the firm, commented, "Retailers may need to consider an 89-day cut-off in order to avoid having to pay health insurance benefits for these workers."

The article noted that when it comes to preventative care, employers must now cover the full cost. This poses a challenge to retailers because they tend to favor these services since they deal with the public. Lynn added, "I think a lot of retailers immunize because they have customers coming in."