Three Wal-Mart executives from the chain's Bentonville, Ark., headquarters arrived in Olympia yesterday to try to fend off legislation that would force large companies to pay for health insurance.

Both the state House and state Senate are considering a measure that would require employers with 50 or more workers to provide health coverage for all employees or pay an equivalent fee into the state's Basic Health Plan.

Dozens of people, including the Wal-Mart executives and vocal union supporters, packed a House hearing room yesterday to debate the issue. The Senate held a similar hearing.

Wal-Mart is regularly singled out as an example of a large employer that could provide better health-care coverage, a characterization the company calls unfair.

The Health Care Responsibility Act, which has become known in Olympia as "pay or play" and the "Wal-Mart bill," is backed by patient advocates and opposed by business associations. Key Democrats support the measure but face tough opposition from lawmakers wary of imposing new business taxes.

Impetus for the bill stems from state figures showing that some large companies have hundreds of employees getting state assistance for health care.

The state Health Care Authority, which oversees the state-subsidized Basic Health Plan, says Wal-Mart had 261 employees on Basic Health as of early last year. Other companies on the list were Del Monte, with 165 employees on Basic Health; Target, with 68; Bon-Macy's (now Macy's), with 62; and Safeway, with 56.

"It's getting to the point that good employers — and I like to think of myself as a good employer — feel like chumps for covering employees and dependents," said Craig Cole, president and CEO of Bellingham-based Brown & Cole grocery stores, during a House Health Care Committee hearing yesterday.

"If we can meet the requirements of the bill, then so can the solar system's largest corporation," said Brown, referring to Wal-Mart.

John Haefner, a Wal-Mart director of benefits, said that Wal-Mart is one of the state's largest employers, with 14,500 workers at 40 stores and Sam's Club outlets. About half the employees are enrolled in one of eight health plans, he said. Many others are covered by spousal plans.

"Unfortunately, a small percentage tell us they can't afford health care from Wal-Mart or any other source," Haefner said.

Through Wal-Mart, Haefner said, a worker can get health insurance for $40 a month while a family can buy coverage for $155 a month. Full-time workers qualify for coverage after three to six months on the job, while part-time workers must wait two years, he added.

"Wal-Mart is being unfairly targeted," spokesman Nate Hurst said in an e-mail. "The fact is, Wal-Mart works hard to offer affordable health-care benefits to our family of associates. We do not design our medical plan to be supplemented by public assistance, nor do we encourage our associates to apply for such programs."

But state Insurance Commissioner Mike Kreidler said yesterday the "pay or play" measure could have a positive impact on the entire health-care system.

"I urge passage of the bill," Kreidler said. "It's the right thing, it's the right time."

The Health Care Authority plans to release estimates of the measure's costs and benefits soon.

The nonprofit Employment Policies Institute, which received some funding from opponents of the measure, said the legislation could cost businesses $1.6 billion.

Nick Perry: 206-515-5639 or nperry@seattletimes.com