Why can't Walmart offer its employees cheap health insurance?

Because you can't buy it from China!

I know a lady who works there. They do offer health insurance and it isn't very expensive. But you have to work a minimum number of hours a week to be eligible. And depending on your store and who makes the schedule. . .

The old, work them just enough hours so they won't qualify for benefits gambit. It's a classic.

If it kicks in at 32 hours per week, I'd be scheduled 31--and if closing and closing duties weren't done, I had to leave my fellow employees in the lurch. :mad:

"a plan where the family pays a $700 deductible and is responsible only for up to $4,000 in medical bills costs nearly $7,000 a year.

average wages (of Walmart workers) amounted to roughly $20,000 a year. "

(The article isn't clear whether that is average wages of all Walmart employees, part-time and full-time)

http://www.spiegel.de/international/business/0,1518,517029,00.html

offered by other employers.

For an average family of four, Wal-Mart charges about $170 every two weeks, with a $3,000 deductible per person, $20 minimum co-payment and restricted services like no birth control, no eye glasses. That comes to about $4,420.00 per year plus the $3,000 per person deductible. Now how is that not very expensive?

We decided to use my health insurance (after I left there). I pay $460 per year a $12 co-payment (no-deductible) and very few restricted services for my family of four.

If Wal-Mart raised it's prices by .01 per item sold, they could cover all Wal-Mart employee's medical benefits, 100%.

Wal-Mart is introducing a new employee health plan, called Value Plan, that will have lower premiums and health savings accounts, the New York Times reports (Barbaro, New York Times, 10/24). The company has been "frequently criticized" for offering low wages and "inadequate" benefits, the Wall Street Journal reports. Fewer than half of its 1.2 million U.S. employees are enrolled in its health plan, and some workers have public health insurance. Wal-Mart currently offers 18 health plans to employees, with the lowest premium for a single individual costing $37 monthly (Wall Street Journal, 10/24). Under the new plan, which has not yet been formally announced, monthly premiums would cost 40% to 60% less than those of current plans. On average, premiums would be lower than $25 for an individual, $37 for a single parent and $65 for a family. For employees in select areas, the premium will be as low as $11, according to Wal-Mart spokesperson Dan Fogleman (New York Times, 10/24). The plans would have a $1,000 deductible but would allow for three doctor visits and three generic prescriptions before the deductible begins (Wall Street Journal, 10/24). In the first year, the plan would impose a $25,000 cap on coverage that will be removed in the program's second year. Out-of-pocket costs would range from about $300 for prescription drugs to $1,000 for hospital stays. Wal-Mart CEO H. Lee Scott will discuss the new option with company employees on Monday. Employees likely will be able to enroll in the new plan in 2006.
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Fogleman said, "We are lowering the costs to make health insurance more affordable. It's fair to say we are listening, but more to our associates than anyone else." According to the Times, some health insurance specialists "generally praised the new plan," saying lower costs likely will attract more workers and reduce the number of uninsured employees. Uwe Reinhardt, a health economist at Princeton University, said Wal-Mart has "removed a big financial barrier between doctors and patients" by allowing for three doctor visits before the deductible begins. He added that critics will "have trouble attacking this plan." Howard Berliner, a professor of health policy at the New School for Social Research, said, "Is it the greatest health care plan in the world? Probably not. But my concern is getting people health insurance so they can get health care when they need it. In that sense, anything that speeds that goal is for the better." However, some analysts warned that it is more beneficial to younger, healthier workers than to older workers who have more health problems. Chip Kahn, president of the Federation of American Hospitals, said the $1,000 deductible "is pretty significant" given that most Wal-Mart employees have annual salaries below $19,000. Tracy Sefl, a spokesperson for Wal-Mart Watch, said the introduction of HSAs is impractical for Wal-Mart employees, adding, "The majority of their work force will not be well positioned to contribute." The Times reports that Wal-Mart's use of HSAs could "prompt other companies to re-evaluate" health accounts (New York Times, 10/24).

Wal-Mart is introducing a new employee health plan, called Value Plan, that will have lower premiums and health savings accounts, the New York Times reports (Barbaro, New York Times, 10/24). The company has been "frequently criticized" for offering low wages and "inadequate" benefits, the Wall Street Journal reports. Fewer than half of its 1.2 million U.S. employees are enrolled in its health plan, and some workers have public health insurance. Wal-Mart currently offers 18 health plans to employees, with the lowest premium for a single individual costing $37 monthly (Wall Street Journal, 10/24). Under the new plan, which has not yet been formally announced, monthly premiums would cost 40% to 60% less than those of current plans. On average, premiums would be lower than $25 for an individual, $37 for a single parent and $65 for a family. For employees in select areas, the premium will be as low as $11, according to Wal-Mart spokesperson Dan Fogleman (New York Times, 10/24). The plans would have a $1,000 deductible but would allow for three doctor visits and three generic prescriptions before the deductible begins (Wall Street Journal, 10/24). In the first year, the plan would impose a $25,000 cap on coverage that will be removed in the program's second year. Out-of-pocket costs would range from about $300 for prescription drugs to $1,000 for hospital stays. Wal-Mart CEO H. Lee Scott will discuss the new option with company employees on Monday. Employees likely will be able to enroll in the new plan in 2006.
Reaction
Fogleman said, "We are lowering the costs to make health insurance more affordable. It's fair to say we are listening, but more to our associates than anyone else." According to the Times, some health insurance specialists "generally praised the new plan," saying lower costs likely will attract more workers and reduce the number of uninsured employees. Uwe Reinhardt, a health economist at Princeton University, said Wal-Mart has "removed a big financial barrier between doctors and patients" by allowing for three doctor visits before the deductible begins. He added that critics will "have trouble attacking this plan." Howard Berliner, a professor of health policy at the New School for Social Research, said, "Is it the greatest health care plan in the world? Probably not. But my concern is getting people health insurance so they can get health care when they need it. In that sense, anything that speeds that goal is for the better." However, some analysts warned that it is more beneficial to younger, healthier workers than to older workers who have more health problems. Chip Kahn, president of the Federation of American Hospitals, said the $1,000 deductible "is pretty significant" given that most Wal-Mart employees have annual salaries below $19,000. Tracy Sefl, a spokesperson for Wal-Mart Watch, said the introduction of HSAs is impractical for Wal-Mart employees, adding, "The majority of their work force will not be well positioned to contribute." The Times reports that Wal-Mart's use of HSAs could "prompt other companies to re-evaluate" health accounts (New York Times, 10/24).

not defending walmart, i dont give a shit. but... having owned a small business we were paying 1200 per family per month. nothing "cheap" about it.

1. Health insurance

2. Utility bills.

I know a guy who closed his music store and took a job elsewhere so he could get health insurance. He never was going to get rich running his own store, but he had enough money to live on and it really added to the community.

:scared:

:sarcasm:

Health Insurance. No longer the greatest Country in the World.

Think what that would do the value of a share!

:sarcasm:

department chain, and the "old work em just enough hours" works at the other chains as well. I have family and friends in several they are all the same not just Wal-Mart, so instead of just calling out one and being disingenuous call them all out, because they all use the same play book!

Oh and the toys that were recalled at Wal-Mart were also sold and recalled at the other chains as well.

cost effective for Wal-mart.

I hardly think Walmart is the only one... As far as that goes, fewer and fewer jobs around here, minimum wage or not, have benes.

does a good job of recognizing that it's min wage employees can't afford high premiums. They have a tiered payment arrangement. If you make less then $20k a year monthly premiums are $16/month, over $30k and you pay $50/month (I forget the middle tier right now) to cover employee only. Rates to cover family are just a little higher. Everyone gets the same kind of bennies no matter what tier you fall into.
To have health/dental/vision with minimum co-pays and no deductibles for me and my 2 kids it will be around $100 per paycheck. Prescriptions are $10 each.

If someone has to take a min. wage job, I would strongly recommend that they see if their county hospital is hiring and check out their benefits.

corporations in the country, only more so. Why Americans continue to allow themselves to be treated this way by the people who employ them is beyond me. I went into business for myself in 1977 on a shoestring just to get away from know-it-all ignorant employers and have never looked back.

they don't care about their employees. if someone gets sick and stays out because they can't go to a doctor walmart will just fire them and hire someone else. maybe at a lower wage if the fired employee had worked there long enough to get raises.

for a week and a half so far, not fired ,not laid off,didn't hire some one in my place.Why is every thing bad walmarts fault try distributing it evenly to all corporate employers, you're being disingenuous if you don't!

... has that on his "to do" list, honest!

:sarcasm:

- Dave