[Vision2020] Wake Up WalMart Update

Thu Feb 23 14:24:41 PST 2006

and right on the heels of the report is this.
mark.
*********
Wal-Mart to Loosen Health Insurance Limits

By MICHAEL BARBARO
Published: February 23, 2006

Wal-Mart Stores, facing a raft of state 
legislation that would require it to increase 
spending on employee health insurance, will lift 
several of its long-standing - and 
most-criticized - restrictions on eligibility 
over the next year, the giant retailer said this 
morning.

The changes, which Wal-Mart's chief executive, H. 
Lee Scott Jr., will formally announce before a 
meeting of the nation's governors on Sunday, 
underscores how big a public relations threat the 
health care issue has become for the nation's 
largest private employer.

Wal-Mart insures less than half of its 1.3 
million employees in the United States and has 
come under growing criticism for skimping on 
benefits and shifting the cost of health care to 
state governments. In the past two months, the 
Maryland Legislature passed a law that would 
force Wal-Mart to improve its benefits and 
legislatures in a dozen more states, including 
California, Washington and Rhode Island, are 
considering similar bills.

The new eligibility rules at Wal-Mart are 
intended to increase the number of employees who 
can access the company's insurance plan, but it 
was unclear how significant the impact would be 
because Wal-Mart released little detailed 
information.

What is clear is that Wal-Mart would still 
require workers, whose average pay is less than 
$20,000 a year, to pay hefty annual deductibles 
and monthly premiums.

Wal-Mart said it would "significantly" reduce the 
waiting period before a new part-time employee is 
eligible for insurance, but it declined to 
specify by how much. Today, part-time workers 
must wait two years, compared with 180 days for 
full-time employees.

In addition, the company will allow part-time 
employees to enroll their children in the 
company's health insurance plan. Until now, 
Wal-Mart covered only the children of full-time 
workers.

At the same time, Wal-Mart said it would make a 
new health-care plan introduced in several 
regions this year, with premiums as low as $11 a 
month, available to half of its employees by next 
year.

That plan allows for several prescriptions and 
doctors visits before a $1,000 deductible kicks 
in. But it is unlikely to cover a complicated 
illness or expensive hospital stay during the 
first year, when there is a $25,000 insurance 
cap. In addition, out-of-pocket payments range 
from $300 for prescriptions to $1,000 for 
hospital stays.

Wal-Mart also said it would expand the use of 
in-store clinics to treat employees. Such 
clinics, which the company set up in Northwest 
Arkansas as a test six months ago, are intended 
for non-emergency medicine, like flu shots.

"We are trying to make our plans more relevant, 
accessible and affordable," said Mona Williams, a 
Wal-Mart spokeswoman.

Asked how many workers are expected to enroll in 
the company's health insurance plan after the 
changes, she said: "We think these enhancements 
are a step in the right direction for associates 
but don't yet know how they affect take rates."

It is unclear how much the new plan will cost 
Wal-Mart, a number that investors will be anxious 
to learn given Wal-Mart's no-frills business 
model, which emphasizes low labor costs. Ms. 
Williams said the plan was factored into 
Wal-Mart's profit forecast for 2006, which the 
company announced earlier this week.

The changes represent a significant victory for 
Wal-Mart critics, particularly organized labor, 
who contend the retailer has skimped on benefits 
and shifted health costs to state governments.

The groups have tried, with apparent success, to 
turn Wal-Mart into a symbol of what is wrong with 
American health care, triggering legislation in 
numerous states that is directed squarely at 
Wal-Mart.

At 2:14 PM -0800 2/23/06, TIM RIGSBY wrote:
>>From Wakeupwalmart.com
>
>------------------------------------------------------------------------------------------------------------------------------------------
>
>You are not going to believe this. Wal-Mart’s 
>health care spending per employee actually went 
>down, and the number of Wal-Mart workers without 
>company health care has risen to a whopping 
>775,000 workers or 57% of the company.
>
>In response, our campaign is releasing a 
>shocking new report titled, “America Pays, 
>Wal-Mart Saves: The Growing Cost of the Wal-Mart 
>Health Care Crisis.” The report estimates the 
>Wal-Mart Health Care Crisis cost American 
>taxpayers nearly $1.4 billion in 2005 with a 
>projected cost over the next five years of $9.1 
>billion.
>
>Please download your copy of the shocking report and take action today:
>http://www.wakeupwalmart.com/redirect/healthcrisis
>
>As you know, we have been working vigorously to 
>enact Fair Share Health Care legislation all 
>across America to stop corporations, like 
>Wal-Mart, from shifting their health care costs 
>onto taxpayers. Although Wal-Mart and its allies 
>are spending untold sums of money and hiring 
>lobbyists in every state to defeat us, the will 
>of the American people cannot be stopped.
>
>We are launching a new tool on our website to 
>help you make your voice heard in your local 
>community. You now have the ability to find your 
>local newspaper and submit a letter to the 
>editor by going to WakeUpWalMart.com
>
>Please make your voice heard on the Wal-Mart health care crisis by going to:
>http://www.wakeupwalmart.com/redirect/healthletter
>
>Wal-Mart’s shockingly bad health care numbers 
>prove more than ever how important it is to 
>build public pressure to change this 
>corporation. We need your help now! We have to 
>grow our movement from 182,000 supporters today 
>to 1 million supporters. As our grassroots army 
>becomes larger, we will become an even more 
>powerful force for change.
>
>Only you have the power to change Wal-Mart and 
>change America. Make sure to download your copy 
>of the “America Pays, Wal-Mart Saves” report and 
>ask your friends, family members and co-workers 
>to join our movement to change Wal-Mart and 
>build a better America.
>
>Thank you for all that you do,
>
>Paul Blank
>WakeUpWalMart.com
>
><html><div>Revolution is not a word but an 
>application; it is not war but peace; it does 
>not weaken, but strengthens. Revolution does not 
>cause separation; it generates togetherness. 
><BR>-John Africa, <EM>Strategic 
>Revolution</EM></div></html>
>
>_________________________________________________________________
>Don’t just search. Find. Check out the new MSN 
>Search! 
>http://search.msn.click-url.com/go/onm00200636ave/direct/01/
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