Walmart will be making changes to its employee health insurance plans. It appears that this will enable the corporation to save money on health care. Unfortunately, the cost of health insurance will increase for employees, and it will be harder for workers to be eligible for it.
Walmart might be a good place to shop for people who are looking for low prices. In my opinion, though, Walmart is not the best place to find employment. I’ve never liked the idea of the strange “cheer” that they make workers do every day before the store opens. I also don’t like how they penalize their workers who have to call in sick, (without making arrangements for their absence ahead of time, somehow). But, I digress.
The changes that Walmart is enacting with its employer sponsored health insurance program do not sound like things that will be helpful to the workers. Instead, it appears to be a way for Walmart to save some money on health insurance.
Newly hired part time employees must work more than 24 hours per week in order to qualify for any of Walmart’s health insurance plans. Those who are assigned less than 24 hours per week (on average) will not be eligible for employer sponsored health insurance, at all. This is a way for Walmart to claim that they offer health insurance to part timers, while restricting the amount of part timers who actually can get it.
There is another significant change coming to new hires. Those that get between 24 to 33 hours per week (on average) will not be allowed to include their spouse on their health insurance plan. They can, however, include their children on their employer sponsored health insurance. I believe that one of the regulations that came about as part of health care reform requires health insurance companies to cover the children of policy holders.
In 2012, Walmart will increase the cost of their employee health plans by 40%. The actual rate of premiums might be less expensive than what some other large companies are charging their employees. However, the Walmart plans are accompanied by high deductibles. It has been said that the low premiums plus the high deductibles are costing Walmart workers more than 20% of their annual pay.
Employees who smoke will be charged extra money on their health insurance. They will have to pay somewhere between an extra $10 to an extra $90 each pay period. This equates to between $260 to $2,340 each year. The only way for smokers to avoid this extra cost is if they decide to not have health insurance.
There is another change that will affect all employees of Walmart, both new and current. Walmart has decided to reduce the amount of money it will contribute to workers savings accounts. These savings accounts are designed to be used to pay for medical bills that are not covered by the health insurance plan. Last year, Walmart contributed $1,000 into the accounts for families. Next year, it will only contribute $500.
Image by Wesley Fryer on Flickr