Walmart, Largest US Private Sector Employer, Cutting Health Benefits for Employees

Walmart Stores Inc, the largest private sector employer in the United States, said on it would no longer provide health benefits to some of its US part-time workers due to rising healthcare costs. This change applies to part-time employees working <30 hours per week. This change is expected to impact approximately 2% of the company’s workforce.

"Like every company, Walmart continues to face rising healthcare costs," Sally Welborn, senior vice president of global benefits, Walmart, wrote in an online post. "This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment," she said.

Walmart cut its full-year profit forecast in August, citing higher employee benefit costs, among other things. The company said then that it expected to spend $500 million on healthcare this year, up from $330 million estimated earlier this year in February, as enrollments and medical costs rise.

On Tuesday, Walmart said it would increase premiums for all US employees in 2015, with a $3.50 increase, totaling $21.90 per pay period for the most popular and lowest-cost employee-only plan, according to Walmart.

The company said it was changing some eligibility terms for part-time workers working >30 hours a week, though details were not provided.

Walmart has nearly 2.2 million worldwide employees, including 1.3 million in the United States alone.—Kerri Fitzgerald

Source: Thomson Reuters. 2014; Wal-Mart to stop healthcare benefits for some part-time workers.