In an attempt to control its rising health care costs, Wal-Mart cuts health care benefits for about 30,000 employees. The cut only applies to part-time workers who work fewer than 30 hours a week. This is representative of about 2% of the company's U.S. workforce.
The cost increase has said to be associated with the increase in Wal-Mart employees signing up for company health benefits this year. A reason behind the increased sing-ups could have been Obamacare, which requires nearly everyone be covered.
An alternative option for those some 30,000 employees who lost coverage is government subsidies on Obamacare exchanges. This could actually turn out to be a better deal for lower-paid employees.
This is not the end of the cuts though. Those who do get to keep their coverage by Wal-Mart will now see their premiums rise. This isn't a small increase by any means, the cheapest and most popular plan will increase from $3.50 to $21.90 per paycheck.
Wal-Mart isn't the only company cutting health care coverage for part-timers, Home Depot and Trader Joe's cut coverage last year.
I'm not sure how I feel about this. Yes, part-timers with no coverage may get a better deal now that premiums have increased. I think Wal-Mart may have bit off more than it could chew on this issue!