Target Joins Home Depot, Walmart, Others In Cutting Health Care For Part-Timers, Citi
- 0Jan 22 by jaadhttp://www.forbes.com/sites/clareoco...ing-obamacare/
It doesn't surprise me that this is happening due to Obamacare...what I did find interesting was this comment from someone defending a comment about the "WalMart’s billionaire shareholders"
"Obviously, you have a skewed view on Walmart shareholders. Many large pensions hold Walmart stocks as a hedging strategy against more volatile stocks, which makes its shareholders more along the lines of those like your neighbors.
As for the Waltons themselves, while they hold majority stock, they are not engaged in Walmart’s day-to-day operations. So they are passive investors at best. Further, Walmart’s executives have a substantially lower profit-to-compensation ratio relative to their peers in the retail industry. Lastly, Walmart’s net profit margin is only 3.5%, which means for every $1 in sales, Walmart’s already spending $0.965 in expenses. Its “billions of profit” comes purely from volume. Labor, being the single largest variable cost in retail management, is the most scrutinized expense because increase in hourly wage would have a disproportionate impact on cost.
Even Bill Gates stated during Morning Joe on MSNBC that the most likely impact of mandatory increase to hourly wages will result in job substitution and destruction".
- 0Quote from jaadWhat is it that you think is happening?Target Joins Home Depot, Walmart, Others In Cutting Health Care For Part-Timers, Citing Obamacare - Forbes
It doesn't surprise me that this is happening due to Obamacare...
- 2Quote from MunoRNI don't like that this was based on a lie, that we now have a bigger burden on tax payers...you should be happy...we are heading in the direction of single payer.Is it really that bad that as it turns out people can't keep their more expensive insurance?
- 1I'm guessing you might have missed the gist of your articles which is that some employers aren't offering health insurance to part-timers so that those part-timers can get a better deal on health insurance.
Trader Joe's announced months ago that they would be dropping the option for part-timers to buy Trader Joe's insurance so that they can then be free to buy more affordable plans on the exchange. From Trader Joe's explanation of their position:
"In Trader Joe's case, company officials,, using the calculator provided through Healthcare.gov, estimate that 70% of those working on average 17.3 hours and 29.9 hours per week will pay less for comparable insurance when they switch to a healthcare exchange plan.For example a Trader Joe's press release cited an example an employee who is a single mom with one child, making $18 an hour and working an average of 25 hours per week. She currently pays $166.50 per month for company-provided health coverage. By moving to a healthcare exchange the worker can buy a comparable policy for $69.59 per month when one factors in the tax credits she will receive. As a result, the company says, the worker will be able to take home an additional $1,675 a year not counting the $500 one-time subsidy Trader Joe's will give her to help defray the cost of buying a policy on the exchange. "This $1,675 of additional income would not be possible if we offered her insurance under our plan, because she would not be able to receive the tax credit available under the ACA," the company said."“In fact, by offering them insurance, we could actually disqualify many of them from being eligible for newly available subsidies that could reduce their overall health insurance expense.”
Also from Trader Joe's: "The ACA brings a new potential player into the arena for the acquisition of health care. Stated quite simply, the law is centered on providing low cost options to people who do not make a lot of money. Somewhat by definition, the law provides those people a pretty good deal for insurance ... a deal that can't be matched by us -- or any company. However, an individual employee (we call them Crew Member) is only able to receive the tax credit from the exchanges under the act if we do not offer them insurance under our company plan."
From your article, an explanation by Target: "“The launch of Health Insurance Marketplaces provides new options for health care coverage that we believe our part-time team members may prefer,” Kozlak wrote, adding that each part-timer will be eligible for a $500 cash payment from Target.
- 3Yes I see it now, take away their crappy plan for $80 a month and make them pay $180 a month for a $3000 deductable and $35 co-pay on their $8 per hour. And then you and I can pick up the difference because 3 out of four get a subsidy. But at least insurance is NOW affordable. It all makes sense.
- 0"Pamela H. (bellethecat) I asked a friend who works at Target, and she said this in her email: "the people that are part time will lose their insurance but be given 500.00 to go on the exchange. Since it's just me and ******* I'll pay $73 a month for the same policy almost. 73x12 is 876, but I'm paying more a month now. *** will pay 34. Some of people are upset but only a few will be paying a lot more like *************. She's on medicare next year anyway. She couldn't insurance on her own tho."
The thing to remember is that for many part-time workers, the rates for policies on the Exchanges is often lower than what their employer would be able to offer, because there will be a larger risk pool. That's why many employers are dropping insurance coverage for their part-timers. It's also less paperwork for them"!