Government Watch

Walmart Drops Health Coverage for Part-Time Employees – Thanks, Obama

By – Peter A. Finocchio and Caroline Rayburn

It should come as no surprise to those of us who have been following the disastrous rollout of the Patient Protection and Affordable Care Act, more commonly known as “ObamaCare,” that Walmart announced today that it will be cutting benefits for part-time employees – those who work less than 30 hours per week.  The move represents a trend among employers large and small in the aftermath of ObamaCare’s implementation.  In January 2013, Target announced a similar move.  When Target announced its changes, the company explained that “health care reform is transforming the benefits landscape and affecting how all employers, including Target, administer health benefits coverage.”  Target’s coverage drop for part-time workers itself followed in the footsteps of several other retailers such as Home Depot, Trader Joe’s, and Forever 21.  In short, Walmart is no isolated case.  Between 2009 and 2013, the proportion of large retail chains that do not offer health coverage to part-time employees has risen from 56 percent to 62 percent.

In addition to cutting benefits for 2 percent of its total workforce, Walmart is raising costs.  The major retailer announced that it is increasing premiums for its associates.  On a conference call, Walmart’s Senior Vice President of Global Benefits, Sally Welborn, said that the company has “worked hard to prevent passing increases on to associates,” but as “health care costs keep going up for all of us in the U.S.,” they simply were left with no alternative.  Employees permitted to keep their health plans through Walmart will see a significant jump in premiums, with the “cheapest and most popular Walmart plan increasing from $3.50 to $21.90 per paycheck,” according to CNNMoney.

Just one day before these changes were announced, liberals were gloating that Walmart, often a source of criticism for them, was helping its employees to sign up for ObamaCare.  Think Progress gleamed at Walmart’s announcement that the chain was staffing 2,700 of its retailers with insurance agents to help employees enroll in new plans via Medicare or ObamaCare’s online insurance marketplace.

Liberals have countered that ObamaCare is helping dropped consumers find better plans on the exchanges, yet this has been largely untrue as dropped coverage and increased costs have gone hand-in-hand.  For Walmart employees, new plans will almost certainly be a downgrade.  In January, the Washington Examiner reported that Walmart’s health plan “is more affordable and provides significantly better access to high-quality medical care than ObamaCare.”  The Washington Examiner piece goes on to cite a study by the Journal of the American Medical Association that found the premiums of unsubsidized ObamaCare employees to be five to nine times higher than Walmart premiums.  Walmart’s 30,000 part-time employees likely will not be thrilled as Walmart helps them search for new plans.

Time and time again, Americans continue to suffer the consequences of ObamaCare.  Health plans have been canceled, patients have been forced to see other doctors, and the cost of health care has continued to rise.  Now, many businesses are feeling the pinch from ObamaCare as they make difficult decisions about the health benefits they can offer part-time employees – if they can even afford to provide coverage to them at all.  The ugly truth about ObamaCare continues to be masked by talking points from the Left that herald greater dependence on government subsidies and downplay the law’s disincentives to work.  AMAC will not let these truths go uncovered.

If You Enjoy Articles Like This - Subscribe to the AMAC Daily Newsletter!

Sign Up Today
Notify of
Most Voted
Newest Oldest
Inline Feedbacks
View all comments
6 years ago

Hitler set up a plan for taking over a society and it worked for him for a time. Lenin did the same thing in Russia. Mao did the same thing in China. Obama is just following what has already been done. There will never be another election that he does not control and he will be the next big dictator for the world. Eventually that system he creates will not be sustainable either and will collapse. But, think of the amount of Americans that will die in this struggle. I do recall that a few died under Mao, Stalin, and… Read more »

6 years ago

None of the things that Obama and his supporters (the treasonous Soros and others) have done surprise me. Barak Hussein Obama, AKA Barry Soetero, is a Muslim. His actions in the middle east substantiate that conclusively. He came into this country from Indonesia as a Muslim and there is no record of him being naturalized. We SHOULD all know the birth certificate profered was a fraud and has been substantiated as one. In Ephesians 6 we are told that it is a Spiritual battle against principalities, powers, the rulers of darkness of this world, and spiritual wickedness in high places.… Read more »

6 years ago

If something isn’t done SOON about the ISIS takeover in Baghdad and the Middle East, health care will be the LEAST of our problems. Does the AMAC insurance plan cover beheadings? Obombme is no doubt planning a “coup” to try and stop ISIS JUST BEFORE THE MIDTERM election — he’s less competent than Jimmy Carter, so good luck with that! (and if he isn’t, he is deliberately allowing the ISIS takeovers) The last beheading in the U.S. was 150 miles from where I live. How close will it come before the rest of the people in this country wake up… Read more »

6 years ago

Get tired of hearing the Progressive, Liberal Left bashing of Wal-Mart. They’re the same corporation who sponsored, supported, & help create Democrat FLOTUS Michelle Obama’s, ‘Eat Healthy’ campaign. Democrats sure didn’t complain about that financial funding. Obamacare is a nightmare. 3 weeks ago I got a letter of cancellation for medical/RX/vision from United Healthcare. Policy will no longer exist after December 31, 2014. Their New policies (2) don’t cover in my zone? Only one insurance carrier does, Humana. Was told it’s a, Take It or Leave It scenario. When I’ve always had 6 to 8 plans to pick from now… Read more »

6 years ago

I just read the comments posted for today and although I am not a daily contributor to this bulletin, I find that most of you feel the same way I do. I have, in the past, posted articles and I believe that Obama is out to destroy our country from within and look at the many incidents that have occurred under his watch, that are slowly destroying America. And it seems the Democrats have all bowed down to him as their “Messiah” and they seem to do his every bidding…what a shame! Looks like no one has a back bone… Read more »

6 years ago

It isn’t just Walmart type companies. Kaiser Permanente has just sent out notices that there will no longer be a Medicare Advantage Plan here in Colorado. Still don’t know what the alternative offering might be. Already the medication costs have doubled. With all the new “exchange” members that joined, we are now finding horrific wait times just to pick up a prescription! There are lines 20-30 people or more to check in at the pharmacy and another to pay and pick up the Rx. When are people going to get out and vote these incumbents out of office? Walmart employees… Read more »

Michael G.
6 years ago

The article cites “a study by the Journal of the American Medical Association that found the premiums of unsubsidized ObamaCare employees to be five to nine times higher than Walmart premiums.” But this is misleading. Part time Walmart employees are making low enough wages to make them eligible for large subsidies. Therefore, the study’s comparison is not valid. Those employees may or may not end up paying more under Obamacare. Depending on the plan they select to enroll in, their coverage may be worse or may be better; we cannot know. I am a conservative, but I do not like… Read more »

Lynn M
6 years ago

Why don’t people understand/comprehend/grasp, ”IF NOTHING CHANGES, NOTHING CHANGES” ? I presently live in CA – my Doctor left his established practice last year saying, ‘he wasn’t willing to put up with what was coming down the road, etc.’ I’m moving out of CA very soon. My husband received a letter from his Doctor, yesterday, saying, ‘sorry, she was leaving her established practice, etc.’ The Napa hospital advertises a ‘5 Hour ER Wait’. They want everyone to KNOW that if you have an emergency, it cannot/will not be dealt with quickly. Any well-informed person knows the illegal non-English speaking overload… Read more »

6 years ago

What about our fallen men in Benghazi? What about lies to the people ?! Us! ,surrounding that from Obama, (Susan Rice, a now proven liar, rewarded for her lies with a promotion) and last but not least “what difference does it make” Hillary Clinton! (no difference to her ,she doesn’t care, she and her family are safe, not murdered, and very rich, her mouth watering for the power of the White House, she can “get away with it”). These people are bringing down a once Blessed Nation. Where are the checks and balances OUR elected paid leaders are supposed to… Read more »

Gary (MSgt, USAF, Ret)
6 years ago

Looks like many business’s are going to have only “part time” employees since they don’t have to pay anything for part-timers. Would not be at all surprised if this does in fact become the norm.

6 years ago

It is a tax. So says the Supreme Court. So, Start fixing this mess by repealing each and every tax. When the taxes are gone, the rest of the law falls of its own weight not being a tax but an Unconstitutional requirement that you buy a particular good.

6 years ago

Most of us know that taking away liberty and choice comes from darkness. We also know that anything that brings freedom and more choice comes from light. With this knowledge you can know The ultimate author of Obama care.
Darkness has its minions here on the earth. Most of them do not know who their master is. The only way to combat darkness is with light. We all know who the source of darkness is. Do we all know who our source of light is?
The forces of good and the forces of evil are real.

6 years ago

It looks like Walmart has lit the fuze on the Obamacare time-bomb which will go off after the election (the delay per Obama) when all the young, MTV-generation, currently getting employer health benefits are told, “Sorry, we cannot afford to pay this anymore.”

Scott Paulson
6 years ago

NOT at ALL surprising during a Sen., Susan Collins (Rino), interview she recently announced that crony Republicans are now resolved that “ACA” is here to stay and they’ve no intention to repeal this nation-rights harming legislation. “Fixing” is their solution. I’m sorry there is no way in the world to fix this albatross! Simplified: if it stinks, looks and tastes bad it’s STILL a t’u’rd!

Folks, changes have to start at the ballot box!

6 years ago

Obama’s plan is working in overdrive! … The more people who lose their “employee” health coverage, the more people relegated to depend entirely on the ACA ! The more people relegated to part time work status, the more people who will have to turn to the government for some type of assistance. The government will eventually, and soon, be able to dictate every thought and action of everyone that has to depend on the government for assistance to survive. … It’s called “having the power to control” … where we all become zombies to the whims of the beaurecrats that… Read more »

Tom Bozikis
6 years ago

What more can I add to all these comments? I’m a bit tired about the slant that it’s all about the evil Koch brothers on the right. If I may ask, what about George Soros and Michael Bloomberg? These two iconic figures on the left that seek to disarm us, ruin the stability of the dollar, and cause our economic system to collapse? You say, “follow the money,” when we follow the billions that each of these icons of progressivism spend to further their cause, and how Mr. Soros has benefited from destroying economies, and we who oppose their agendas… Read more »

sandy c
6 years ago

Yes Obummer is responsible and so are all the politicians that voted for this disaster.

William M. DeWeese
6 years ago

In july, before the last Presidential election,The U.S.Supreme Court issued a ruling that the health care act was a TAX,as such could not be challenged under constitutionality. Remember,Obama care is only 900 pages of 2700 pages of the law, which 18,000 pages of enforcement and article were written and 16,000 employees hired to enforce and carry out the doctrine. What about the other 1800 pages of the law that the Supreme court says is a TAX. When will the other shoe fall and how much will it cost America and it’s people???? WE have no FIX for STUPID, only the… Read more »

Bill Galloway
6 years ago

Maybe there is hope yet. Six out of the seven comments above, get it. With only one that is still denying reality and looking for someone else to blame. Another saga in the continuing evidence that Obama care is a disaster for the workers and families in this country. But their goal is to find someone, or something else to blame. First it’s losing jobs, then it’s losing your Insurance, then reduced work hours, but their argument is that is all because of those greedy business owners. Yep. that’s the party line.

6 years ago

As long as the Govt bureaucrats and top level pols have their health coverage of their choosing then the rest of the country can go to hell as far as they are concerned. Can they hide from Ebola virus and other such health disasters – probably not, so the last laugh is on them.

Would love your thoughts, please comment.x