AFSCME 3357-HOF'S BLOG

Walmart shifting the cost of healthcare to taxpayers

Walmart is one of the most profitable companies in the United States. A Georgia study found that approximately 1 out of 4 Walmart employees has a child enrolled in Peachcare, Georgia's subsidized health insurance program for children from low-income families.

From the Atlanta Constitution reprinted at the link below:

"A snapshot of Georgia's program for uninsured children shows that it's packed with kids of Wal-Mart employees. A state survey found 10,261 of the 166,000 children covered by Georgia's PeachCare for Kids health insurance in September 2002 had a parent working for Wal-Mart Stores. That's about 14 times the number for next highest employer: Publix, with 734."

According to the article, Walmart offers family coverage at $66.25 every two weeks. This is 80-20 major medical insurance with a $1000 yearly deductible. (I'm not sure whether the deductible is per person or per family.)

So a Walmart employee deciding whether to insure the family has to figure that the insurance premium will cost $1,689 per year plus the $1000 deductible, plus non-covered expenses such as vaccinations, eye exams, dental. . . plus the 20% of covered expenses. For most, it makes sense to gamble and go bare to save the cash to pay for expenses that you know you are going to have.

At a pay rate of $8.00 per hour and a full time schedule of 2000 hours per year, that's $16,000 gross income. Walmart calls their insurance plan low cost. how is a MINIMUM of 16.8% of gross income ($2679/16000) low cost?

WalMart profits while we pay the bill