Wal-Mart to Boost Health Care

Wal-Mart to Boost Health Care

19 April 2006 · No Comments

(Via Insurance Planet :) A wire service story has some interesting news about Wal-Mart:

Wal-Mart Stores Inc. said Monday it will relax eligibility requirements for part-time employees who want health insurance, allowing an additional 150,000 workers to gain coverage if they choose.

Until now, the employees have had to work for Wal-Mart for two years to qualify for employer-sponsored insurance. Beginning next month, they will have to work at the company for one year. The coverage also will extend to their children.[...]

[Wal-Mart VP Susan] Chambers said the version of the health plan that the company expected most employees to sign up for would be available for $23 a month. Workers’ children would be included for $15 more, whatever the size of the family.

But [Chris Kofinis, spokesman for WakeUpWalMart.com] countered that the coverage also calls for a deductible that requires the worker to pick up the first $1,000 in medical expenses, and the deductible rises to a maximum of $3,000 for families. He said many workers just can’t afford that amount, and will pass on the new coverage.

Well, it’s better than nothing, I guess. Besides, what do you expect for $23/month?

One could argue that Wal-Mart could eat the cost of more comprehensive coverage, but “eating it” would likely mean recouping it in the costs of its products….and that, in turn, would likely drive away a non-trivial component of their customer base, if I’m not mistaken.

Tags: Big Business ·