NYT: Wal-Mart to Expand Health Plan for Workers

[DeepModem Mom]

Wal-Mart to Expand Health Plan for Workers
By MICHAEL BARBARO
Published: October 24, 2005


Wal-Mart, which has long been criticized for the benefits it offers to its workers, is introducing a cheaper health insurance plan, with monthly premiums as low as $11, that the company hopes will greatly increase the number of its employees who can afford coverage.

Jumping into a new area, Wal-Mart is also offering health savings accounts, which the federal government introduced last year. Few employers offer them.

The new benefits, which Wal-Mart calls the Value Plan, follow years of complaints that at Wal-Mart, the nation's largest employer, health insurance is out of reach for many of its 1.2 million workers in the United States, forcing thousands of them to turn to state-sponsored programs or forgo health coverage altogether.

"We are lowering the costs to make health insurance more affordable," said a Wal-Mart spokesman, Dan Fogleman, who declined to comment on how much the plan would cost the company. Asked if the new insurance plan was in response to growing criticism, he said, "It's fair to say we are listening, but more so to our associates than anyone else."

Health insurance specialists generally praised the new plan, saying its lower premiums were likely to attract more employees and thereby reduce the ranks of the uninsured. They also noted, however, that the plan's $1,000 deductible would be high for Wal-Mart workers, particularly older employees who are likely to visit doctors more often, and might not cover expensive treatments, particularly in its first year....


http://www.nytimes.com/2005/10/24/business/24mart.html

[William769]

1. The employess will somehow get screwed.

[napi21]

2. I think it's a good first step, but I'll be intrested to see just what it

covers. It's obviously better than nothing, and the cost should be affordable for most of their employees. It is scarey though. Unless 90% of the people who sign up for it never need to use it, $13.2M to pay health care benefits for 1.2 million people isn't going to do very much.

[texpatriot2004]

3. "Expand" what health plan? They don't have a health plan unless

you're higher up the food chain.

The taxpayers are subsidizing their health care because Satan's Superstore won't take care of it's people with a living wage and health benefits...you know cause they are barely getting by on their
profits. :sarcasm:

[WildClarySage]

5. Poor Walton kids barely have enough to pay someone to do their

homework for them, and apparently have't got nearly enough to pay them to keep quiet about it!

[WildClarySage]

4. Why do I get the feeling that, like so much else that Walmart sells,

this will be cheap and of poor quality?

[DBoon]

7. Imported from China, too?

Will WalMart provide "barefoot doctors" straight from the PRC?

[leanin_green]

10. Because you'd be right. I worked for a Wal-Mart DC and let. . .

me tell you. I'll bet the insurance is still a catastophic plan. Which is good if you have a major injury, but shit if you just need basic medical. You end up paying more out of your own pocket for that. And a catastrophic plan does little for the minions who work in the stores where a major injury risk is greatly reduced.

[alcibiades_mystery]

6. Pressure works!!!

Keep it up!!!!

[nvliberal]

8. Health savings accounts? They're usually worse than useless.

You have to have money to put money into these accounts.

If you don't make much money, you can't afford them.

[Sgent]

11. that's a false dicotomy

Most companies do not require the consumers to fully fund the HSA's.

Many companies do not expect employees to directly contribute at all.

Its the plan structure that creates problems. The funding mechanism is no better or worse than any other plan. For instance, I once had a major medical policy that paid 100% of all expenses -- after a $5,000k deductible. I would have gladly taken many of the HSA plan designs over that.

[burrowowl]

9. BS

They make sure people don't work 40 hours or work off the clock.
BULLSHIT! and the plan is worth dipshit!