(Photo by Justin Sullivan/Getty Images
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

The Benefits of Continuous Thermal Monitoring

Oct. 17, 2023
Read this eBook to learn more about collecting and using data intelligently to improve performance.

The New Employee Experience Strategy for the Everywhere Workplace

June 14, 2023
HR and Comms leaders are challenged with managing a distributed workforce. Read this ebook for best practices for rebuilding the employee experience and staying connected and ...

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Voice your opinion!

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