Walmart to offer Low Cost Health Insurance To Employees  (10/24/2005)

Source: The National Journal Group

Wal-Mart is introducing a new employee health plan, called Value Plan, that will have lower premiums and include health savings accounts (HSAs).

The company has been criticized for offering low wages and "inadequate" benefits, the Wall Street Journal reports. Fewer than half of its 1.2 million U.S. employees are enrolled in its health plan, and some workers have individual  health insurance.

Wal-Mart currently offers 18 health plans to employees, with the lowest premium for a single individual costing $37 per month. monthly (Wall Street Journal, 10/24). Under the new plan, which has not yet been formally announced, monthly premiums would cost 40% to 60% less than those of current Walmart health plans.

On average, premiums would be lower than $25 for an individual, $37 for a single parent and $65 for a family. For employees in select areas, the premium will be as low as $11, according to Wal-Mart spokesperson Dan Fogleman. The health plans would have a $1,000 deductible but would allow for three doctor visits and three generic prescriptions before the deductible begins. In the first year, the plan would impose a $25,000 cap on health coverage that will be removed in the program's second year. Out-of-pocket costs would range from about $300 for prescription drugs to $1,000 for hospital stays. Wal-Mart CEO H. Lee Scott will discuss the new option with company employees on Monday. Employees likely will be able to enroll in the new plan in 2006.