Tuesday, December 4, 2012

Walmart Looking to Shift Costs of Employee Healthcare to Taxpayers?

Walmart, the nation’s largest private employer and the world’s biggest retailer plans to begin denying health insurance to newly hired employees who work fewer than 30 hours a week, according to a copy of the company’s policy obtained by The Huffington Post.

The online news outlet reports that under the policy, set to take effect in January, Walmart also reserves the right to eliminate health care coverage for certain workers if their average workweek dips below 30 hours, something the report says happens with regularity and at the direction of company managers.

Walmart did not disclose how many of its roughly 1.4 million U.S. workers are vulnerable to losing medical insurance under its new policy and in an emailed statement a company spokesman said Walmart had “made a business decision” not to respond to questions from The Huffington Post, accusing the publication of unfair coverage.

The paper reported that labor and health care experts portrayed Walmart’s decision to exclude workers from its medical plans “as an attempt to limit costs while taking advantage of the national health care reform known as Obamacare. Among the key features of Obamacare is an expansion of Medicaid, the taxpayer-financed health insurance program for poor people. Many of the Walmart workers who might be dropped from the company’s health care plans earn so little that they would qualify for the expanded Medicaid program, these experts said.”

Ken Jacobs, chairman of the Labor Research Center at the University of California, Berkeley told the newspaper that, “Walmart is effectively shifting the costs of paying for its employees onto the federal government with this new plan, which is one of the problems with the way the law is structured.”

The report noted that because of Walmart’s huge size and its massive number of employees, the company’s policies tend to influence American working conditions more broadly and that other companies are now crafting similar policies that will exclude some part-time workers from medical coverage. 


source

2 comments:

Anonymous said...

Tying healthcare to the employer unduly empowers the employer over the employee, thus directly placing the health and well being of the employee in the hands of the employer (usually large corporations like Wallmart owned and controlled by the top 1% of the country).
Such a system artificially perpetuates a relationship of master and slave (where the employer or top 1% of the country is the master and the employee is the slave), a condition well known to us from American history, as slavery.

~ Barbara ~ said...

My apologies for the delay in posting your comment.