Wal-Mart Cutting Health Benefits to Some Part-Time Employees
Source: Bloomberg
By Nick Turner and Renee Dudley Oct 7, 2014 11:08 AM ET
Wal-Mart Stores Inc. (WMT), the world’s largest retailer, plans to stop offering health benefits to U.S. employees who work less than 30 hours a week, becoming the latest company to cut coverage in response to the Obamacare law.
The change, which affects about 30,000 workers, is in line with what other retailers are doing, including Target Corp. (TGT), Home Depot Inc. (HD) and Walgreen Co. (WAG), the company said today on its website. Wal-Mart will rely on the firm HealthCompare Insurance Services Inc. to help employees find replacement coverage.
“We don’t make these decisions lightly, and the fact remains that our plans exceed those of our peers in the retail industry,” Sally Welborn, senior vice president of global benefits for the Bentonville, Arkansas-based company, said on its internal blog.
The U.S. Patient Protection and Affordable Care Act, known as Obamacare, doesn’t require companies to cover part-time workers, and offering them health plans may disqualify those people from subsidies in government-run insurance exchanges that opened last year. Today’s move by Wal-Mart will affect about 2 percent of its 1.3 million U.S. employees.
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http://www.bloomberg.com/news/2014-10-07/wal-mart-will-cut-health-benefits-to-some-part-time-employees.html