Walmart will no longer be offering health insurance benefits to its U.S. employees who work less than 30 hours per week, according to a company blog post.
The benefit cuts are expected to impact approximately 2% of the company’s workforce, or close to 30,000 employees. The retailer will work with third party provider HealthCompare Insurance Services to guide associates to alternative plans.
Walmart cites rising health care costs as a major reason for the policy changes: “Like every company, Walmart continues to face rising health care costs,” said Sally Welborn, SVP of Global Benefits at Walmart. “This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment.”
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The cuts follow in the footsteps of Target, Home Depot, Walgreens and Trader Joe’s: all retailers that have eliminated health benefits for part-time employees.
Walmart also will increase its premiums for all associates in 2015 to combat the costs. The retailer’s most popular and lowest-cost plan will increase by $3.50 to $21.90 per pay period.
The company will continue to provide health care options that include no lifetime maximum, preventative care covered at 100%, and $250 up to $1,000 to help pay for medical expenses.
