Number9 Posted October 21, 2011 Report Share Posted October 21, 2011 Walmart to cut part time workers health benefits, thus increasing the bottomline. http://www.thestreet.com/_yahoo/story/11284731/1/wal-mart-reportedly-to-cut-health-benefits-for-part-timers.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA "If workers don't have health insurance, it's their fault" Herman Link to post Share on other sites More sharing options...
CMJ Posted October 21, 2011 Report Share Posted October 21, 2011 LOL Walmart can argue that at least their employees still have fire exits to escape from. Link to post Share on other sites More sharing options...
Cyrus Posted October 21, 2011 Report Share Posted October 21, 2011 Wal-Mart, the largest U.S. retailer and the nation's largest private employer, is also slashing the amount that it puts in employees' healthcare expense accounts by 50 percent. The changes, which affect U.S. associates who work for Wal-Mart and Sam's Club, are being explained during the current fall enrollment period before they take effect in January. Preventive care such as annual checkups remains fully covered. Wal-Mart will now provide $250 for associates to use for healthcare expenses that are not covered, down from $500, and will provide $500 for families, down from $1,000. Those who use tobacco products will also pay more, with rates varying by the type of plan someone chooses. "The current healthcare system is unsustainable for everyone and like other businesses we've had to make choices we wish we didn't have to make," said Wal-Mart spokesman Greg Rossiter. "Our country needs to find a way to reduce the cost of healthcare, particularly in this economy." Wal-Mart said that it will continue to pay the majority of costs for its employees' healthcare. Not all of the company's 1.4 million U.S. employees sign up for its healthcare plans. Wal-Mart said it currently insures more than 1 million people, including workers' family members. Wal-Mart is not alone in looking for ways to cut spending on healthcare. Starting next year, Wells Fargo & Co will ask employees to fund their own medical expense accounts or choose to pay higher insurance premiums and have the company fund them, following the lead of companies such as General Electric that offer account-based healthcare plans. A study last month by the Kaiser Family Foundation found that the average annual premium for family coverage through an employer increased 9 percent to $15,073 in 2011 from the year before. Since 2000, premiums have risen 134 percent. Employers pay nearly three-quarters of that premium, a rate that has held fairly steady for the last 10 years, according to the foundation's data. A Mercer survey found that health benefits costs on average will rise 5.4 percent in 2012, the smallest increase since 1997, because employers have been so aggressive about cutting these expenses. WAL-MART'S CHANGING PLANS At Wal-Mart, associates become eligible for healthcare coverage after working for the chain for one year. One of Wal-Mart's basic plans for an associate costs $15 per two-week pay period, or just over $1 per day. A tobacco user will now be charged an additional $10 per pay period. Associates will use an honor system to say whether they use tobacco products. Wal-Mart has offered part-time workers the option of signing up for healthcare coverage since 1996, regardless of how many hours per week worked. Now, part-time associates who work less than an average of 24 hours per week will no longer be eligible for the company's health insurance plans. Those who were already eligible may still participate, even if they work fewer than 24 hours per week. The changes were met with disappointment from some who have spoken out against Wal-Mart in the past. "(Wal-Mart) may get away with these attacks on workers' rights in other parts on the country, but we won't stand for it New York City," said New York City Council Speaker Christine Quinn, who has pushed to keep the chain out of New York City. Those who work about 24 hours to 33 hours a week can still sign up for coverage for themselves and for their children. Wal-Mart has not said what percentage of its U.S. associates work fewer than 24 hours a week. Those who work 34 hours a week or more are considered full-time associates. Changes to the company's healthcare plans were first reported by the New York Times. Shares of Wal-Mart were up 1.1 percent at $56.98 in afternoon trading on Friday. I don't usually get involved in these types of threads, but I will say this as someone who is involved in the finances of a small business. Most people have no idea how expensive it is to provide health insurance for employees. It's prohibitively expensive and is becoming more expensive every year. On top of payroll and every other tax expense that businesses incur it's becoming more and more difficult to provide reasonable and competitive benefits. Most employees don't even realize how much they cost and there's some workers who because of their age, weight and other health factors cost $500-600 a month for basic coverage (doesn't include spouses) It costs dramatically more than anyone really realizes and for everyone who has been in touch with this issue realizes that the problem has always been cost NOT access. I realize that there's a number of very hard working people at Wal-Mart but I wonder when society began to have the expectation that a part time (I realize big box retailers try and keep hours low to have more PT workers) entry level job at retailer (no HS degree required) should come with full health benefits? Link to post Share on other sites More sharing options...
abenjami Posted October 21, 2011 Report Share Posted October 21, 2011 I don't usually get involved in these types of threads, but I will say this as someone who is involved in the finances of a small business. Most people have no idea how expensive it is to provide health insurance for employees. It's prohibitively expensive and is becoming more expensive every year. On top of payroll and every other tax expense that businesses incur it's becoming more and more difficult to provide reasonable and competitive benefits. Most employees don't even realize how much they cost and there's some workers who because of their age, weight and other health factors cost $500-600 a month for basic coverage (doesn't include spouses) It costs dramatically more than anyone really realizes and for everyone who has been in touch with this issue realizes that the problem has always been cost NOT access. I realize that there's a number of very hard working people at Wal-Mart but I wonder when society began to have the expectation that a part time (I realize big box retailers try and keep hours low to have more PT workers) entry level job at retailer (no HS degree required) should come with full health benefits? I couldn't agree more and it really pisses me off to no end when I read bullshit propaganda type stuff like this. Currently, Walmart employees pay about $30/month for the basic healthcare plan. Walmart picks up the tab for the rest of their insurance costs. Walmart also gives them $500 cash (or $1,000 for a family) to pay for their co-pays, prescriptions, and other out of pocket medical expenses. Under their new system, they are only going to give each employee half of that cash amount for out of pocket expenses. Tobacco users pay a little more, which makes complete sense. And they won't be paying a bunch of money for part time workers insurance, which no one seems to point out helps them keep paying for most of the full time workers insurance. And some bitch wants to call that infringing on "workers' rights"? LMFAO. I had no idea all workers had the right to free health insurance. I would honestly love to smack that bitch across the face. Link to post Share on other sites More sharing options...
Number9 Posted October 21, 2011 Author Report Share Posted October 21, 2011 Walmart is already paying these workers $1000-$1800 per month. They could easily afford to spend $600-$700 a month for ins and have plenty left for co-pays. What more could they ask for? Link to post Share on other sites More sharing options...
abenjami Posted October 21, 2011 Report Share Posted October 21, 2011 Walmart is already paying these workers $1000-$1800 per month. They could easily afford to spend $600-$700 a month for ins and have plenty left for co-pays. What more could they ask for? What more could who ask for? Walmart or these workers? Link to post Share on other sites More sharing options...
Cyrus Posted October 21, 2011 Report Share Posted October 21, 2011 Walmart is already paying these workers $1000-$1800 per month. They could easily afford to spend $600-$700 a month for ins and have plenty left for co-pays. What more could they ask for? For the sake of clarification, how much should they pay entry level, part-time workers? Plus, I think the fact that they can easily afford full insurance and co-pay for all employees is based more on the appearance that Wal-Mart is a successful company and less on the actual fiscal numbers of the company. And to preemptively address my own question: I'm not trying to be heartless here, I want everyone to be successful and I don't want to see anyone suffer. However, at the same time I know that some jobs (where we recognize compensation is commensurate with skill) should be for college students and young workers not 40-50 yr. old individuals trying to raise a family with 3 kids. At the very least it should be a ladder to a better position, but never a long-term solution. Unfortunately that means that there are some positions where there won't be full benefits in health care, retirement plans, profit sharing and so on. Link to post Share on other sites More sharing options...
abenjami Posted October 21, 2011 Report Share Posted October 21, 2011 They could ask for free condoms. That might help keep down their medical/health related costs. Link to post Share on other sites More sharing options...
abenjami Posted October 21, 2011 Report Share Posted October 21, 2011 Why should any employer be required to pay anything towards any employee's health insurance? They are called benefits, not handouts. Link to post Share on other sites More sharing options...
OzTitan Posted October 21, 2011 Report Share Posted October 21, 2011 This is one part of Americana I don't really get - here in Aus, health cover is entirely up to the individual to pay 99.9% of the time. Then again, we do have a gov health fund/scheme too. Link to post Share on other sites More sharing options...
CMJ Posted October 21, 2011 Report Share Posted October 21, 2011 I would honestly love to smack that bitch across the face. LMAO! Link to post Share on other sites More sharing options...
OILERMAN Posted October 21, 2011 Report Share Posted October 21, 2011 Employers should not be paying health care costs. Go to single payer and be done with it Link to post Share on other sites More sharing options...
Number9 Posted October 22, 2011 Author Report Share Posted October 22, 2011 What more could who ask for? Walmart or these workers? Why the workers, of course. If an employer can stop paying health insurance cost, that means they will get to keep the money for themselves. That increases the bottomline, instantly. If they don't want the jobs, there are plenty of Illegals who do. Link to post Share on other sites More sharing options...
abenjami Posted October 22, 2011 Report Share Posted October 22, 2011 I'm pretty sure Walmart isn't going to hire a bunch of illegal workers and get brought up on criminal charges and fined pretty heavily. Link to post Share on other sites More sharing options...
abenjami Posted October 22, 2011 Report Share Posted October 22, 2011 What is Walmart supposed to do since health insurance costs are going through the roof? Keep paying them and risk long term survival? Nines I think you are missing the point I made above. They are only cutting out part time workers. That cost savings is what will allow them to keep providing their employees who work 24+ hours a week with health insurance at a very reasonable cost. If part time workers want Walmart to keep paying their health insurance then perhaps they should devote more of their effort to working for Walmart. Why should someone who works 16 hours per week get the same amount of free health care as the guy who busts his ass for the company full time? Link to post Share on other sites More sharing options...
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