Friday, October 10, 2014
Walmart to remove health insurance for 30,000 Employees
Walmart said that they will be cutting the health insurance coverage for their part-time workers like what other small businesses are doing. Walmart is the United States' largest private employer. This sad news will affect 30,000 employees of Walmart and is a result of increased healthcare costs because of the Affordable Care Act or Obamacare. This will be implemented on January 1, 2015, they will stop offering insurance to employees working less than 30 hours a week.
Sally Welborn, Wal-Mart’s senior vice president for global benefits said that "The cost of Obamacare were significant and led us to make some tough decisions."
The trend of companies cutting benefits to cut cost and save money is a concern, base on a survey from Towers Watson, 12% of companies are planning to bar healthcare coverage of spouses with similar aims to cut costs.
Francis DeYoung retired insurance professional and consultant with the Small Business Association said:
“There is such a big cost factor involved. When you are looking at a family plan and you have got to provide coverage for even 4 or 5 employees, it is a big number. There is so many uncertainties in the future and these businesses are scared to death.”
So are you still happy with your Obamacare?