Wal-Mart Stores Inc. is cutting health insurance for another 30,000 part-time workers and raising premiums for its other employees, as U.S. corporations push to contain costs in the wake of the federal health-care law.
Autumn is typically when U.S. companies unveil changes to employee insurance plans. This is the first such enrollment period since employers could assess the full financial impact of the federal health-care overhaul, and it is a key moment as companies work to lower their spending ahead of looming taxes on the most generous plans.
Many businesses are continuing to shift more costs to workers. Phoenix-based technology distributor Avnet Inc., for example, is paring back its traditional plans in favor of high-deductible options. Other companies are reducing coverage for spouses, according to consultants at Towers Watson & Co.
Still others are going further, ending their traditional coverage for employees who will instead get a fixed sum of money to buy their own insurance on private exchanges. Aon PLC’s Aon Hewitt is set to announce that enrollment in its exchange will grow to around 850,000 workers and dependents next year, as another 15 employers sign up.
Several facets of the health-care overhaul are driving concerns about costs: one is the coming tax on so-called Cadillac plans, which carry high premiums and offer rich benefits, and another is the individual mandate that requires most workers to obtain coverage or else face a penalty.