Retail giant Wal-Mart announced Tuesday that it will end health insurance coverage for 30,000 part-time workers, while the company plans to increase premiums for other workers, citing the Affordable Care Act. The announcement could actually be a boon to even more progressive health reform efforts.
The Wall Street Journal reported Wednesday that Wal-Mart is blaming rising costs for the moves, stating that the company’s insurance costs are expected to increase $500 million more than it had forecast for the year ending January 31. In response, the company plans to drop coverage for employees who work less than 30 hours per week and will raise premiums for all other workers by 20 percent beginning January 1. A Wal-Mart benefits executive would not tell the Journal how much the company expected to save as a result of the changes.
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