In the past few years Wal-Mart has increased the health care benefits they offer to their employees, due largely to pressure, from well people, because many of 1.4 million workers couldn't afford or didn't qualify for coverage, but were excluded them from Medicaid. However, now they will be rolling back coverage for their part time staff and raising premiums for full time staff. Because it is so expensive, Wal-Mart has no choice but to cut the benefits offered; all future part time employees who work less than 24 hours a week on average will no longer qualify for the company's health care plans. I want to note that "on average" means we can over work you at certain points in the year as long as we cut your hours down later. Additionally, new employees who average 24 to 33 hours a week can't include a spouse on their health care plan, but fortunately the children will be covered.
Naturally, Wal-Mart would not say the percentage of it's work force that is part time or worked fewer than 24 hours a week. Wal-Mart spokesman, Greg Rossiter (@gregrossiter, feel free to stalk this man) claims the decision to deny coverage is the result of the company's revamping of its health care offerings and rising costs.
“Over the last few years, we’ve all seen our health care rates increase and it’s probably not a surprise that this year will be no different. We made the difficult decision to raise rates that will affect our associates’ medical costs. The decisions made were not easy, but they strike a balance between managing costs and providing quality care and coverage.”
There are many potential causes:
- New Federal Health Care
- Flat sales
- Lack of incentive for employers to provide benefits for employees during the recession
- Premiums are up 9%, which is 5% more than predicted, and employees are shouldering the burdens
In 2012, Wal-Mart's premiums will increase for some plans by more than 40%. Some would argue that these workers pay relatively low premiums compared to other plans from different employers, but Wal-Mart employees complain that the low premiums are accompanied by high deductibles, which can exceed 20% of their pay. Now, employees will pay $260 to $2,340 a year for coverage. The reality is that many employees won't be able to afford health care coverage.
Back to Rossiter:
“We are proud to be among a few companies that continue to offer an affordable associate-only medical option for about a dollar per day or $15 per pay period.”
Of course many employers don't offer health care coverage at all. Additionally, Wal-Mart is reducing the amount of money employees can contribute to personal health savings accounts.
Wal-Mart is one of the worst companies in the US, and one of the largest employers. They are an example of a company were it is better not to have a job than work for them. The manipulation of hours, they pay you just enough you don't qualify for public benefits, but still remain in poverty.
