Hipocracy of the month- Wal Mart slashes benefits while launching their own health care line?

by Site Manager on October 21, 2014

walmart-slashes-health-planHypocrisy of the month- Wal Mart slashes benefits while launching their own healthcare line

While launching their own health insurance plan, Wal Mart has turned to the option of cutting most of the insurance coverage for its part time workers. This is largely because the largest employer in America is suffering from having to account for high health care costs, therefore, the safest move they chose to make is to reduce healthcare costs for the Wal Mart health insurance plan.

Walmart went public with their plan stating that they will not offer health insurance to employees who work an average of less than 30 hours on a weekly basis. This decision is expected to dismantle the lives of 30,000 employees. Walmart’s decision is on the same level as Target and various other American companies.

The senior vice president apologized on their plan informing the media that they are looking to introduce some third party organization to allow part time workers to regain their coverage at cheaper prices. She also said that the decision has not been easy for Walmart but they had to choose between finding a balance between the cost and need of the workers to the cost for the company. This announcement actually followed their previous one where Walmart was shocked to announce that more people enrolled in the company’s healthcare plan than the affordable insurance. Nonetheless, Walmart has actually been the last in the list to announce this news because since the year 2013, most of the companies had already stopped offering health insurance to part time employees. Therefore, Walmart has still been keeping up with its traditions for a time until they became difficult to handle for the company.

This is not all. Walmart has also decided to raise its premium to enable the full time workers to cover the increasing healthcare costs. This is a major move by Walmart which is the only possible way the company could account for its increasing costs. Premiums are expected to go up from $18.40 to $21.90, therefore, the company has been thoroughly working out on their plan to ensure everything is being done to counter the rise in costs for the company.

The news is a blow to the part time workers who were heavily reliant on the company for their insurance. But, the workers are not really left with an option as they have the option to keep their job and get insurance from elsewhere or give it up.

Like this Article? Sign up for our Newsletter

We respect your email privacy

Leave a Comment

This blog is kept spam free by WP-SpamFree.

Previous post:

Next post: