Wal-Mart will drop health coverage for some part-timers as of Jan. 1
Follows similar moves by competitors
A man pushes a shopping cart outside of a Walmart store that boarded its entrance and closed early in Kailua-Kona, Hawaii, Thursday, Aug. 7, 2014, as the area prepares for Hurricane Iselle. Hurricane Iselle is expected to arrive on the ... more >
By Tom Howell Jr. - The Washington Times - Tuesday, October 7, 2014
Wal-Mart announced Tuesday it will no longer provide health insurance to some of its part-time workers as of Jan. 1, following in the footsteps of other big retailers who dropped coverage, citing rising costs and new options outside of the workplace.
The change will affect roughly 30,000 workers who work less than 30 hours per week, or 2 percent of its total U.S. workforce and 5 percent of its part-time contingent, the company said.
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Wal-Mart had required workers to put in at least 30 hours to qualify for health benefits after the passage of the Affordable Care Act, but there were previously eligible associates who were still covered.
“Like every company, Wal-Mart continues to face rising health care costs,” the company said in a blog post. “This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment.”
The company stressed that its health benefits remain competitive, covering 75 percent of an employee’s premiums, and that the decision came after retailers like Target, Home Depot, Walgreens and Trader Joe’s announced similar changes.
“The health care landscape today is changing,” company spokesman Randy Hargrove said, noting there are additional insurance options, for instance, on the state exchanges set up by Obamacare.
Wal-Mart employees’ premiums are rising in 2015, for instance its most popular plan will increase by $3.50 to $21.90 per pay period, or “still half the average premium other retail employees pay, the company said in its blog post.
About 1.2 million employees are covered by the company’s health plan, and Obamacare’s individual mandate now requires most Americans to hold coverage or pay a fine, a motivator that could drive up Wal-Mart’s costs.
“It led people to become more aware of the need for health care coverage,” Mr. Hargrove said of the law.
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