Posted 6:46 PM by Bonnie

Wal-Mart's plan a sham (for more on the moral bankruptcy of Wal-mart click on one of the links on the side of my page)

By Paul Blank - Editorial in USA Today
November 6, 2005
Wal-Mart's announcements about its health care plan are nothing more than a desperate publicity stunt to salvage a faltering public image. Unfortunately, Wal-Mart's new plan is unlikely to insure one additional worker. Here's why: Wal-Mart refuses to address the fundamental reason half of its workers don't have company health care — extremely high deductibles and strict eligibility requirements.
The cheapest deductible on Wal-Mart's new plan is $1,000 for individual coverage and $3,000 for family coverage. For Wal-Mart workers, many of whom make $12,000 to $15,000 a year, the cost could be as much as 25% of their take-home pay for individual coverage and up to 40% for family coverage.

Second, Wal-Mart has strict eligibility requirements. Unlike managers, who qualify immediately, full-time workers are eligible for health care coverage only after six months, twice the national average. Part-time employees are eligible after two years and are never eligible for family coverage.

In addition, Wal-Mart's health savings accounts shift health care costs from the employer onto the individual and are available only to workers who already have health care. Therefore, by definition, the HSAs don't help any uninsured Wal-Mart workers.

The fact is, despite the company's nearly $10 billion profit last year, more than 600,000 Wal-Mart workers live without company health care. Even though Wal-Mart is the USA's largest corporation, it provides health care to 30% fewer workers than the average company in the S&P 500. And, most disturbing, one of every two children of Wal-Mart workers is either uninsured or relies on public health care.

No wonder Wal-Mart Executive Vice President Susan Chambers admits in a leaked memo, "Our coverage is expensive for low-income families, and Wal-Mart has a significant percentage of associates and their children on public assistance."

Behind Wal-Mart's smiley face, senior executives are hatching out new schemes to cut costs at workers' expense. Wal-Mart's internal memo exposes their plan to cut health care costs by dissuading unhealthy or obese people from applying, pushing out more senior workers, shifting to more part-time employees and cutting spousal benefits.

Americans will see Wal-Mart's announcement for what it is — a company desperate to hide its growing moral bankruptcy.