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Court backs Wal-Mart in healthcare flap

BALTIMORE, Jan. 18 (UPI) -- A U.S. Court of Appeals in Baltimore has ruled in Wal-Mart's favor in a healthcare decision judges said violated the federal labor law.

The 2-1 ruling was against Maryland's first-of-its-kind law in 2006 forcing Wal-Mart Stores to spend more on employee healthcare. It had been held up as a model for other states grappling with mounting Medicaid bills, the New York Times said.

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But, the court found that by forcing Wal-Mart to revamp healthcare plans in Maryland, the state law directly violated the Employee Retirement Income Security Act, or Erisa.

The law, the judges said, was intended to allow big companies to set up uniform health benefits across the country, rather than navigate state-by-state requirements.

That decision, upholding a lower court decision in July, threatens to derail healthcare legislation under consideration in states across the country, the Times said.

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