Target to Drop Health Insurance for Part-Time Workers

DigitalDrifter

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More fallout from the disaster known as Obamacare.


Target Corp. (TGT) said it will end health insurance for part-time employees, joining Trader Joe’s Co., Home Depot Inc. and other retailers that have scaled back benefits in response to changes from Obamacare.

About 10 percent of Target’s part-time employees, defined as those working fewer than 30 hours a week, use the company’s health plans now, according to an announcement posted on the Minneapolis-based company’s website. Target said it would pay $500 to part-timers losing coverage and a consulting firm will help workers sign up for new Obamacare plans.

The U.S. Patient Protection and Affordable Care Act is the largest regulatory overhaul of health care since the 1960s, creating a system of penalties and rewards to encourage people to obtain medical insurance. The law known as Obamacare doesn’t require most companies to cover part-time workers, and offering them health plans may disqualify those people from subsidies in new government-run insurance exchanges that opened in October.

“Health care reform is transforming the benefits landscape and affecting how all employers, including Target, administer health benefits coverage,” Jodee Kozlak, Target’s executive vice president of human resources, said in yesterday’s web posting. She cited “new options available for our part-time team, and the historically low number of team members who elected to enroll in the part-time plan.”

The health law requires all companies employing 50 or more people to offer health insurance to those working 30 or more hours starting in 2015. No part-timers will see their hours cut, Kozlak said. Target, the second largest U.S. discount retailer, had an estimated 361,000 total employees at the end of the last fiscal year, according to data compiled by Bloomberg.

Affordable Plans

The Affordable Care Act created new government-run health insurance exchanges to sell coverage beginning this month to uninsured people, often with premiums discounted by federal subsidies. It disqualifies Americans for subsidies at the exchanges if they have an offer of “affordable” coverage from their employers, defined as an insurance premium less than 9.5 percent of their income.

Target said on its website that many of its part-time workers may prefer coverage from the health law’s exchanges, and that by offering them insurance, “we could actually disqualify many of them from being eligible” for subsidies.

Coverage for Target employees who work fewer than 30 hours will end April 1, the company said. Open enrollment for 2014 under the Affordable Care Act closes a day earlier.
Target to Drop Health Insurance for Part-Time Workers - Bloomberg
 

SteadyMercury

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I wonder how much they had to contributed per month for their health plan? Since they are part time low wage workers it is quite possible they'll pay even less after fed subsidies for a plan from the insurance exchange.
 

BillyZane

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More fallout from the disaster known as Obamacare.


Target Corp. (TGT) said it will end health insurance for part-time employees, joining Trader Joe’s Co., Home Depot Inc. and other retailers that have scaled back benefits in response to changes from Obamacare.

About 10 percent of Target’s part-time employees, defined as those working fewer than 30 hours a week, use the company’s health plans now, according to an announcement posted on the Minneapolis-based company’s website. Target said it would pay $500 to part-timers losing coverage and a consulting firm will help workers sign up for new Obamacare plans.

The U.S. Patient Protection and Affordable Care Act is the largest regulatory overhaul of health care since the 1960s, creating a system of penalties and rewards to encourage people to obtain medical insurance. The law known as Obamacare doesn’t require most companies to cover part-time workers, and offering them health plans may disqualify those people from subsidies in new government-run insurance exchanges that opened in October.

“Health care reform is transforming the benefits landscape and affecting how all employers, including Target, administer health benefits coverage,” Jodee Kozlak, Target’s executive vice president of human resources, said in yesterday’s web posting. She cited “new options available for our part-time team, and the historically low number of team members who elected to enroll in the part-time plan.”

The health law requires all companies employing 50 or more people to offer health insurance to those working 30 or more hours starting in 2015. No part-timers will see their hours cut, Kozlak said. Target, the second largest U.S. discount retailer, had an estimated 361,000 total employees at the end of the last fiscal year, according to data compiled by Bloomberg.

Affordable Plans

The Affordable Care Act created new government-run health insurance exchanges to sell coverage beginning this month to uninsured people, often with premiums discounted by federal subsidies. It disqualifies Americans for subsidies at the exchanges if they have an offer of “affordable” coverage from their employers, defined as an insurance premium less than 9.5 percent of their income.

Target said on its website that many of its part-time workers may prefer coverage from the health law’s exchanges, and that by offering them insurance, “we could actually disqualify many of them from being eligible” for subsidies.

Coverage for Target employees who work fewer than 30 hours will end April 1, the company said. Open enrollment for 2014 under the Affordable Care Act closes a day earlier.
Target to Drop Health Insurance for Part-Time Workers - Bloomberg

so what. I mean we're talking about 10% of their part employees, that's barely a blip and should play no part in any sane discussion about this law.
 

Trajan

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a 'blip'........:eusa_think: so whats a 'non blip' like? whats the over and under? :eusa_eh: when does a blip indicate more than the blip itself?
 

Bluedog

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Irony: PPACA is supposed to encourage people to obtain insurance,but no bells or whistles when people lose coverage. Hmmmm.


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ShootSpeeders

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so what. I mean we're talking about 10% of their part employees, that's barely a blip and should play no part in any sane discussion about this law.
That blip is 40,000 people that you hateful democrats are telling "set your own broken leg". Get help please.
 

Geaux4it

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Obamacare Strikes Again: Target Drops Part-Timers From Healthcare Plan (And Fires Others Just In Case)

Obamacare Strikes Again: Target Drops Part-Timers From Healthcare Plan (And Fires Others Just In Case) | Zero Hedge

Effective April 1st, Target announced today that it would no longer offer healthcare coverage to its part-time employees. As The Hill reports, Target's HR executives 'spun' the decision as good for the employees..."by offering them insurance, we could actually disqualify many of them from being eligible for newly available subsidies that could reduce their overall health insurance expense." The company will provide a $500 cash payment to "minimize disruption," and specifically calls out Obamacare as "providing new options... that we believe our part-time members may prefer."Of course, just for good measure, Target is cutting 475 jobs and chooing not to fill a further 700 open positions - again, we presume, to minimize disruption (to their bottom line).
 

gallantwarrior

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I wonder how much they had to contributed per month for their health plan? Since they are part time low wage workers it is quite possible they'll pay even less after fed subsidies for a plan from the insurance exchange.
They may pay less, but someone, somewhere, has to pay more to cover their subsidies.
 

SteadyMercury

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That blip is 40,000 people that you hateful democrats are telling "set your own broken leg".
I thought you used to bitch about the hateful democrats forcing people to get insurance if they don't have any. Now they are telling people they can't have insurance that would probably be cheaper.

You're confused, and you suck at math.
 

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