Walmart Extends Healthcare Benefits To U.S. Workers' Domestic Partners
By Sam Lewis
Mega-retailer falls in line with Supreme Court’s June Decision
The world’s largest retailer informed its employees on Tuesday that it would begin offering health insurance benefits to the domestic partners of its workers in the U.S. beginning next year. Walmart employs 1.3 million workers — making it the biggest employer outside of the federal government — half of which are enrolled in its healthcare plans. The company said it does not know how many workers would be enrolling in the new offering.
The extension of healthcare benefits to domestic partners of Walmart employees comes after a U.S. Supreme Court decision which forced the federal government to recognize same-sex marriages in states where it is already legal. “Since we operate in all 50 states, we thought it was important to develop a single definition for all Wal-Mart associates in the U.S.,” spokesman David Tovar said. Coverage for domestic partners is only applicable if they are legal spouses, not legally separated, or they are a domestic partner of same or opposite gender in an ongoing, exclusive relationship similar to marriage for no less than 12 months, with intentions to indefinitely continue sharing a household.
Walmart also said it began preparing for the Affordable Care Act years ago, but did not make any changes to its plans in order to fall in line with the upcoming federal mandate. The new regulations affect part-time workers (less than 30 hours per week) the most, as those working full-time hours will be offered benefits under Obamacare. At Walmart, part-time employees must work for the retailer for a year, averaging 30 hours per week, to be eligible for benefits. The company says its most popular insurance plan will cost $18.40 per bi-weekly pay period next year, up from $17.40 this year. Depending on the plan chosen, Walmart associates will pay 3 to 10 percent more for their medical coverage next year. Benefit providers for Walmart include Aetna, UnitedHealth Group’s UHC, and Blue Cross Blue Shield, depending on where a particular worker lives. “There's no one-size-fits-all solution for people's benefits, so we're trying to offer a number of benefit options and then let associates make choices on what's best for them,” said Tovar.
The actions of Walmart coincide with Starbucks, which said no cuts or reductions in hours would happen for its part-time employees as it prepares for the implementation of Obamacare. However, this is in direct contrast with UPS, which last week informed non-union employees that spouses would not qualify for the company’s healthcare benefits if they could get coverage through their own employers.
No matter what side of the political fence you fall upon, there is no denying that medical insurance and healthcare regulations are making headlines and are undergoing radical changes. Retailers are making big decisions regarding these changes that could affect the livelihood of their business for years down the road. Walmart often receives a bad reputation for its business practices, but in terms of healthcare, it seems it is making the right moves to benefit its employees.