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Wal-Mart introduced a new health insurance plan for its employees, with cheaper monthly premiums that it hopes will allow more workers to afford health care coverage for themselves and their families. Currently, fewer than half of Wal-Mart’s workers are covered by company health insurance, compared with 80% of workers at Costco.
The “Value Plan,” as Wal-Mart calls its insurance package, has low premiums of less than $25 for an individual, $37 for a single parent, and $65 for a family, with a high deductible of $1,000. Individuals can visit a doctor three times before they have to pay their deductible, which the company hopes will encourage workers to seek preventative care.
The reaction to the announcement of the plan has been mixed. Critics say the plan is geared more for healthy, young workers. Analysts caution that the $1,000 deductible on a $19,000 annual salary can be very significant and that the majority of Wal-Mart’s workers will not receive much benefit from the plan.
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| Questions |
| 1. |
An internal Wal-Mart memo was leaked to The New York Times this October. The memo outlined some of the company’s ideas for controlling its spiraling healthcare costs including the following three points:
- Redesign benefits and other aspects of the Associate experience, such as job design, to attract a healthier, more productive workforce.
- Design all jobs to include some physical activity (e.g., all cashiers do some cart gathering.)
- It will be far easier to attract and retain a healthier workforce than it will be to change behavior in an existing one. These moves would also dissuade unhealthy people from coming to work at Wal-Mart.
Review these three points in light of the article about Wal-Mart’s new healthcare plan. Does Wal-Mart have their employees’ best interests in mind? Be prepared to discuss your thoughts in class.
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| 2. |
Do some research on the Internet, or read Nickel and Dimed: On (Not) Getting By in America by Barbara Ehrenreich. List at least three problems facing the low-paid employees of corporations like Wal-Mart. In your opinion, does the health care plan do enough to meet their needs?
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| 3. |
2. The article mentions that fewer than half of Wal-Mart’s employees are covered by its health insurance, while 80% of workers at Costco use the company’s coverage. Do some research on the employment and compensation philosophies of the two companies. What is the difference at Costco?
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