PHOENIX (AP) -- Though Arizona has benefited from the second-highest retail growth rate in the country during the past decade, low-paid retail employees have drained state coffers by being prime users of the health care program for the poor.

One in six state residents are enrolled in state-paid health care, known as the Arizona Health Care Cost Containment System, at an annual cost of more than $1 billion. That's up from eight years ago, when one in 11 residents was in the program, according to a report by The Arizona Republic.

Only eight other states and the District of Columbia have a higher percentage of residents in their respective Medicaid programs than does Arizona, according to the Kaiser Family Foundation, which gathers information on health policies.

Anthony Rodgers, AHCCCS director, said some retail employees simply can't afford private health care coverage.

"Part of the issue in Arizona is the number of low-wage and part-time jobs, especially in the service and retail industries and small business," Rodgers said.

Rodgers said another reason for the growth of AHCCCS is expanded eligibility requirements, which voters approved in 2000.

The state's economic landscape has changed significantly since 2000, when Honeywell was the state's top employer with 17,500 workers.

Wal-Mart is now the state's largest private employer, and its annual average wage is $22,547, according to the company. That is slightly higher than the $21,128 that a typical full-time retail worker makes in Arizona.

A single parent with two kids making either of those average retail wages would qualify for an AHCCCS program called KidsCare. Many retail jobs, however, are not full-time and the wages are lower.

Other retailers among the 10 largest employers in Arizona are Fry's, Bashas and Safeway grocery stores. Each is also among the top 10 businesses with the most workers covered by AHCCCS during the past three years, according to records obtained by The Republic.

Ioanna Morfessis, a national economic-development consultant based in Phoenix, said a cultural shift will have to occur if Arizona wants to slow the growth of low-wage retail jobs.

"I don't think there is another state that chases retail the way we do," said Morfessis, president of IO.INC.

There are a few others, but only Nevada had a higher growth rate in retail jobs, 31 percent. Three other states - California, Texas and Florida - produced a greater number of retail jobs than Arizona did, but their populations are much larger.

"Retail jobs historically have never been high-wage jobs," Morfessis said. "The challenge is, our local governments depend heavily on local sales taxes."

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