Wal-Mart and Health Care Coverage for Its’ Employees
Mart and Health care coverage for its’ employees Martha Jones Argosy University Wal-Mart and Health Care coverage for its Employees Wal-Mart, the nation’s largest private employer is coming up with a more flexible health care plan that will be more affordable for its employees. The number one retailer in the nation decided that the new health plan would eliminate about $10000. 00 deductibles in hospitals care and outpatient surgery, as well as offer more than 2,400 generic drugs to their employees for just $4. 00. Wal-Mart and Health Care coverage for its Employees
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Wal-Mart is a company built on integrity, hard work, and pride. Sam Walton the owner and founder of Wal-Mart, Sams Clubs believed that in the end, all business operations could be reduced to three words: people, product, and profits. “Unless you’ve got a good team, you can’t do much with the other two. ” Wal-Mart business strategy is to keep prices as low as possible. Their vision statement is “Wal-Mart’s mission is to help people save money so they can live better. ” Wal-Mart business strategy tells a lot about how the company feels about their hard working dedicated associates, whether they or full time or part time.
Sam Walton’s promise of a “better life for all” is a questionable business practices. Wal-Mart limited health benefit plan was only offered to the part – time associates and not their families. Restrictions and Exclusions Limiting Coverage for worker. Wal-Mart requires workers to wait relatively long periods before becoming eligible to buy into a Wal-Mart medical plan. These waiting periods are particularly important for holding down the company’s health costs, because turnover rates appear to be very high among the earlier limited health benefits left most of the employees uncovered implies that they might ave lacked access to quality health care due to the high cost. This implies that there were high rates of absenteeism as the sick employees could not afford to get medical attention that would help them get well in time to report to work. Absenteeism reduces productivity of an organization and in extreme cases can affect the profit margins. The new benefit plan both full- and part-time associates are eligible. The total benefits package for a Wal-Mart associate includes, in addition to health care, programs such as company contributions to 401(K)/profit-sharing plans, associate discount cards, paid time off and life insurance.
Wal-Mart associates have more than 50 ways to customize their healthcare coverage depending on their needs. The drawback to this plan is employees will not be able to choose different coverage options, but can only alter their insurance on the dimensions of the deductible/health care credit and thus their premium. All Wal-mart employees will have deductibles (up to $2000 in the case of the cheapest plan), but employees will also receive a health-care credit of $100, $250 or $500. (Wal-Mart Announces Improvements to 2008 Health Benefits Package, 2007).
For those waiting for their health insurance benefits to kick in (at Wal Mart this takes 2 years for part-time employees), there is short-term life insurance. Dental insurance and vision insurance can also be purchased independently, and often at affordable rates. In addition, many individual health insurance plans can be customized, so the things that are not covered by the employer can still be protected under another, less extensive insurance plan. Wal-Mart should consider that the value employees place on various benefits is likely to differ from one employee to another.
An older workforce is more concerned about (and use) medical coverage, life insurance, and pensions. A store with a high percentage of women of childbearing age may care more about disability or family leave. Wal-Mart should check which considerations apply to their own employees and identify more specific needs and differences. One approach is to use surveys to use surveys to ask employees about the kinds of benefits they value. Wal-Mart can use data about costs to help them select the kinds of benefits to offer.
Wal-Mart goals and employee benefits, can offer certain high-cost benefits while also looking for ways to control the cost of those benefits. The highest-cost items tend to offer the most room for savings, but only if the items permit choice or negotiation. In addition Wal-Mart can control certain costs such as workers’ compensation by improving their experience ratings. Cost control is especially important—and difficult—when economic growth slows or declines. Reference: (n. d. ). Retrieved from ttp://www. alliedquotes. om/Resources/Wal-mart-Employees-Coverage. htm Noe, R. A. (2011). Fundamentals of Human Resource Management. In M. -H. L. Solution, Fundamentals of Human Resource Management. . 3. VitalSource Bookshelf. McGraw-Hill Learning Solutions, 092008,. . Typical Health Benefit Package in Private Industry,” Facts from EBRI,. (2006, Apri). Retrieved from Employee Benefit Research Institute: www. ebri. org. Wal-Mart Announces Improvements to 2008 Health Benefits Package. (2007, September 18). Retrieved from Wal-Mart Stores, Inc: http://walmartstores. com/PrintContent. aspx