May 2, 2024

Wal-Mart to Offer Health Benefits to Domestic Partners

The company, the nation’s largest private employer, has been a target of attacks by labor groups for what they call substandard wages and benefits. It said Tuesday that the changes were made so it could have a uniform policy for all 50 states at a time when some states have their own definitions of what constitutes domestic partnerships and civil unions.

Employees can enroll their domestic partners from Oct. 12 through Nov. 1.

Wal-Mart defines domestic partners as spouses of the same-sex or opposite gender. They must be unmarried partners who are not legally separated, who have lived together for at least 12 months, are not married to anyone else, are in an exclusive relationship and plan to continue sharing a household indefinitely, said Randy Hargrove, a Wal-Mart spokesman.

“States have different definitions,” Mr. Hargrove said. “We are going to have our own definition that will apply to our associates.”

The move, which was announced to Wal-Mart workers in postcards sent to them Monday, follows the United States Supreme Court decision in June to overturn a 1996 law that denied federal benefits to legally married same-sex couples. The decision forces the federal government to recognize same-sex marriages in states where they are legal.

Wal-Mart also announced that next year it will offer an eyewear care program, including eye exams, to its eligible associates.

The company, based in Bentonville, Ark., has 1.3 million full-time and part-time workers in the United States. More than half of the workers participate in health care plans, the company says. About 1.1 million Wal-Mart workers and family members combined participate in Wal-Mart’s health care plan.

Article source: http://www.nytimes.com/2013/08/28/business/wal-mart-to-offer-health-benefits-to-domestic-partners.html?partner=rss&emc=rss

Wal-Mart Cuts Some Health Care Benefits

Citing rising costs, Wal-Mart, the nation’s largest private employer, told its employees this week that all future part-time employees who work less than 24 hours a week on average will no longer qualify for any of the company’s health insurance plans.

In addition, any new employees who average 24 hours to 33 hours a week will no longer be able to include a spouse as part of their health care plan, although children can still be covered.

This is a big shift from just a few years ago when Wal-Mart expanded coverage for employees and their families after facing criticism because so many of its 1.4 million workers could not afford or did not qualify for coverage — rendering many of them eligible for Medicaid.

Under pressure from states saddled with rising Medicaid costs and from labor unions and community groups, Wal-Mart had agreed to offer part-time employees, even those averaging less than 24 hours a week, health care insurance after a year on the job, shaving a year off the eligibility requirement. Wal-Mart also said that it was offering health plans that cost its employees about $250 a year for family coverage.

At the time, the moves were considered a departure from some of its major rivals and large employers, more than half of whom offer no company-sponsored health plan for part-time workers.

On Thursday, the company would not say what percentage of its work force was part time or worked fewer than 24 hours a week. Greg Rossiter, a Wal-Mart spokesman, said the decision to deny coverage to new part-time employees resulted from the company’s revamping of its health care offerings in light of rising costs.

“Over the last few years, we’ve all seen our health care rates increase and it’s probably not a surprise that this year will be no different,” Mr. Rossiter said. “We made the difficult decision to raise rates that will affect our associates’ medical costs. The decisions made were not easy, but they strike a balance between managing costs and providing quality care and coverage.”

The company said the changes were not a result of the new federal health care law. But the higher rates along with steep spikes in premiums for other plans this year are likely to stoke the national debate over the year-old legislation that has pitted President Obama and Democrats against Republicans opposed to the changes. Challenges to the law by several states are now before the Supreme Court.

These moves are also occurring in a postrecession period when Wal-Mart has been struggling to regain its footing after months of disappointing or flat sales. And with unemployment still hovering around 9 percent, employers may feel less compelled to offer expansive benefits to people desperate for work.

Nationwide, employer-sponsored health premiums are up 9 percent, and increases of 5 percent or more are predicted for next year, with workers shouldering higher burdens on premiums and deductibles.

In 2009, Wal-Mart said 52 percent of its employees obtained health coverage through it, but on Thursday it declined to give the percentage.

Documents on Wal-Mart’s health and other benefit offerings were obtained by The New York Times from the Organization United for Respect at Walmart, a union-backed group of Wal-Mart employees that is seeking to pressure the company to improve wages and benefits.

In Wal-Mart’s 2012 health offerings, premiums will increase for some plans by more than 40 percent, although many of their workers pay relatively low premiums in comparison to more generous plans offered by other employers. But many Wal-Mart employees complain that their low premiums are accompanied by high deductibles that sometimes exceed 20 percent of their annual pay.

Wal-Mart’s new health offerings will require many employees who smoke to pay a significant penalty. They will be required to pay an extra $10 to $90 each pay period — $260 to $2,340 a year — if they want health coverage.

Several other large employers have begun charging higher premiums to employees who smoke, according to Mercer, a benefits consulting firm. Among the largest employers, about 28 percent vary their premiums based on tobacco use.

Mr. Rossiter defended the penalty for smokers, saying, “Tobacco users generally consume about 25 percent more health care services than nontobacco users.”

In its health care brochures, Wal-Mart told its employees that diseases caused by tobacco result in $96 billion in extra health care costs nationwide. And it noted that some other prominent companies, including Home Depot, Macy’s and PepsiCo, charge smokers more as part of their health plans.

Article source: http://feeds.nytimes.com/click.phdo?i=f5af6ec757e8623f6cf540da0c51f7a8