Business

Wal-Mart extends benefits to more workers

NEWS IN BRIEF — Posted May 8, 2006

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Wal-Mart Stores Inc. announced that it is changing its health benefits, expanding access to more part-time employees and their children.

The company, criticized by labor unions and state legislators for offering low wages and stingy benefits, said that effective May 13, part-time employees will be eligible for health coverage after one year of service, down from two years. The world's largest retailer also is offering coverage to the children of those employees.

The company, which will hold a special midyear enrollment period this month, estimates that more than 150,000 part-time employees will be eligible for initial and enhanced coverage when the revised benefits kick in.

The health coverage will cost employees not more than $23 per month per employee and $15 for their children, no matter how large the family.

And starting in 2007, Wal-Mart said it plans to make that coverage available to half of all its employees for as little as $11 a month plus and additional $9 for children.

Other changes effective next year include reducing co-pays on generic prescriptions for common conditions to $3 from $10, Wal-Mart said.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2006/05/08/bibf0508.htm.

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