Wal-Mart Stores will cease offering health insurance coverage to employees who work less than 30 hours a week, likely pushing many of those workers to healthcare exchanges created by the Patient Protection and Affordable Care Act. Wal-Mart follows several other major retailers who also have cut health benefits for part-time workers.
Sally Welborn, the company's senior vice president of global benefits, announced the change in a post Tuesday on the company's blog. The move will affect about 2% of Wal-Mart's 1.3 million workers in the U.S., or about 26,000 employees, she wrote, noting that executives at the company “don't make these decisions lightly.”
In addition, Welborn wrote that the company will raise its premiums for full-time workers. For example, monthly premiums for the company's cheapest and most widely used plan will increase 19%, from $18.40 to $21.90.