(Photo by Justin Sullivan/Getty Images
Industryweek 7537 Walmart Cuts Health Benefits Some Us Part Time Staff
Industryweek 7537 Walmart Cuts Health Benefits Some Us Part Time Staff
Industryweek 7537 Walmart Cuts Health Benefits Some Us Part Time Staff
Industryweek 7537 Walmart Cuts Health Benefits Some Us Part Time Staff
Industryweek 7537 Walmart Cuts Health Benefits Some Us Part Time Staff

Walmart Cuts Health Benefits for Some US Part-Time Staff

Oct. 7, 2014
Walmart says it plans to eliminate health insurance benefits for some part-time workers in the U.S. and to raise insurance premiums overall to offset rising health-care costs.

NEW YORK -- Walmart on Tuesday said it would eliminate health insurance benefits for some part-time workers in the United States and would raise insurance premiums overall to offset rising health-care costs.

The retail giant will stop providing coverage to part-time employees who work fewer than 30 hours per week, said Sally Welborn, senior vice president for global benefits at Wal-Mart Stores, in a corporate blog post.

The company will still provide health insurance to employees -- called "associates" at the world's largest retailer -- who work 30 hours or more per week.

But cutting benefits for those working less than 30 hours a week means Walmart has the same policy as other large retailers, including Target, Home Depot, Walgreens and Trader Joe's, she said.

Welborn said the moves were necessary to compensate for higher costs across the system, including costlier doctor visit and more expensive prescriptions.

"We don't make these decisions lightly," she said.

The shift affects about 2% of Walmart's US workforce of about 1.3 million.

Welborn said US employees eligible for health care benefits will see an increase in premiums for 2015. The change means Walmart's most popular plan will cost employees $21.90 per pay period, up by $3.50.

"Like every company, Walmart continues to face rising health care costs," Welborn said. "This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment."

Copyright Agence France-Presse, 2014

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

Adopting an Open Ecosystem: The Way Forward for Frontline Operations

March 11, 2024
Today's manufacturing tech stack thrives on connectivity, integrating new and legacy players for a seamless operation - not on monolithic systems. Embrace the future of frontline...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!