[NPInfo] Wakeupwalmart.com

[Christine Smith]

My issues with Walmart have nothing to do with being a "big box" retailer.
Both Walmart and Target can drive the Ma and Pa places out of business, just
like Starbucks or Barnes and Noble can. More power to them though I
certainly do support the "little guys" except of course coffee places since
Buckies treats my daughter so well.

However, Wal-Mart has been blasted over and over for many unfair business
practices, with Health care just being one of the many issues. Target does
not have such practices. 

You can check out many, many article on line about Wal-Mart, the most
powerful being at www.wakeupwalmart.com The group asserts problems in the
many areas and makes and provides its documentation for its claims. 

Christine Smith, NP
Antioch, CA


Wal-Mart and Health Care
Download the Wal-Mart and Health Care Flyer - PDF 

Wal-Mart's Health Care Plan Fails to Cover Over 775,000 Employees 

Wal-Mart reported in January 2006 that its health insurance only covers 43%
of their employees. Wal-Mart has approximately 1.39 million US employees.
[http://www.walmartfacts.com/docs/1625_jan2006healthcarebackgrounders_576890
240.pdf] 
Wal-Mart's Health Insurance Falls Far Short of Other Large Companies 

On average for 2005, large companies (200 or more workers) cover
approximately 66% of their employees. If Wal-Mart was to reach the average
coverage rate, Wal-Mart should be covering an additional 318,000 employees
[Kaiser Family Foundation, 2005 and
http://www.walmartfacts.com/docs/1625_jan2006healthcarebackgrounders_5768902
40.pdf]. 
Wal-Mart's Health Care Eligibility is Restrictive 

Part-timers-anybody below 34 hours a week - must wait 1 year before they can
enroll. Moreover, spouses of part-time employees are ineligible for family
health care coverage for 2006. [Wal-Mart Stores, "My Benefits, New Peak Time
Benefits Making a Difference For You," 2006] 
Full-time hourly employees must wait 180 days (approximately 6 months)
before being able to enroll in Wal-Mart's health insurance plan. Managers
have no waiting period. [Wal-Mart 2006 Associate Guide] 
Nationally, the average wait time for new employees to become eligible is
1.7 months. For the retail industry it is 3.0 months. [Kaiser Family
Foundation & Health Research and Educational Trust, 2005] 
All of Wal-Mart's Health Plans Are Too Costly for Its Workers to Use 

Since the average full-time Wal-Mart employee earned $17,114 in 2005, he or
she would have to spend between 7 and 25 percent of his or her income just
to cover the premiums and medical deductibles, if electing for single
coverage. [Wal-Mart 2006 Associate Guide and UFCW analysis] 
The average full-time employee electing for family coverage would have to
spend between 22 and 40 percent of his or her income just to cover the
premiums and medical deductibles. These costs do not include other
health-related expenses such as medical co-pays, prescription coverage,
emergency room deductibles, and ambulance deductibles. [Wal-Mart 2006
Associate Guide and UFCW Analysis]. 
Wal-Mart trumps the affordability of its new health care plan. According to
Wal-Mart, "In January [2006], ...Coverage will be available for as little as
$22 per month for individuals" [www.walmartfacts.com] 
What Wal-Mart's website leaves out: Coverage is affordable, but using it
will bankrupt many employees. Wal-Mart's most affordable plan for 2006
includes a $1,000 deductible for single coverage and a $3,000 deductible for
family coverage ($1,000 deductible per person covered up to $3,000).
[Wal-Mart 2006 Associate Guide] 
Wal-Mart Admits Public Health Care is a "Better Value" 

President and CEO Lee Scott said in 2005, "In some of our states, the public
program may actually be a better value - with relatively high income limits
to qualify, and low premiums." [Transcript Lee Scott Speech 4/5/05] 
Wal-Mart's Health Care is Getting Costlier 

Between 2000-2005, the cost of premiums rose 169 percent for single coverage
and 117 percent for family coverage. [UFCW analysis of annual Wal-Mart
Associate Guides]. 
In comparison, premiums for family coverage in the U.S. have increased only
by 59%, from 2000-2005. [Employer Health Benefits: 2004 Annual Survey,
Kaiser Family Foundation & Health Research and Educational Trust, 2004]
Wal-Mart Employees Pay More for Health Care Costs 
In 2004, Wal-Mart employees, in total, paid approximately 41% of the plan
costs [Wal-Mart IRS 5500 Filings, 2005]. 
Nationally for 2004 on average employees paid for only 16% of single
coverage costs and 28% of family coverage costs [Kaiser Family Foundation,
2005]. 
Wal-Mart Covers Less of the Health Care Costs Compared to Its Competitors 

In a state analysis, the Massachusetts Department of Health and Human
Services found that in 2003, Wal-Mart covered only 52% of total health care
premium costs compared to K-Mart which covered 66%, Target which covered
68%, and Sears which covered 80% ["Employers Who Have 50 or More Employees
Using Public Health Assistance," Division of Health Care Finance and Policy,
2/2005] 
Wal-Mart's Spending Falls Below Industry Standards 

Wal-Mart's spending on health care for its employees falls well below
industry and national employer averages. In 2002, as reported in the Wall
Street Journal, Wal-Mart spent an average of $3,500 per employee. By
comparison, the average spending per employee in the wholesale/retailing
sector was $4,800. For U.S. employers in general, the average was $5,600 per
employee, Therefore, Wal-Mart's average spending on health benefits for each
covered employee was 27% less than the industry average and 37% less than
the national average. [Bernard Wysocki, Jr. and Ann Zimmerman, "Wal-Mart
Cost-Cutting Finds a Big Target in Health Benefits," Wall Street Journal
September 30, 2003 p1] 
Wal-Mart Only Spends 77 Cents an Hour Per Employee for Health Benefits 

In 2004, Wal-Mart spent $1.5 billion on its health insurance. This amounts
to an employer contribution of around only $0.77 an hour per employee. This
accounts for approximately a half-percent of Wal-Mart's $285 billion in
sales in 2004. [Susan Chambers, Wal-Mart Internal Memo, 2005, Wal-Mart
Annual Report, 2005]. 
Wal-Mart Increased Advertising More Than Health Care 

In 2004, Wal-Mart spent nearly the same amount on advertising as it did on
health insurance. In 2004, Wal-Mart reports that it spent $1.5 billion on
health care benefits and $1.4 billion in advertising. [Wal-Mart Annual
Report 2005, Susan Chambers, Wal-Mart Internal Memo, 2005] 
Between 2003 and 2004, Wal-Mart increased its advertising budget by $434
million, only increasing its spending on employee health care by $100
million. That means Wal-Mart increased its spending on advertising by 45
percent while only increasing its spending on employee health care by 7
percent. [Wal-Mart Annual Report 2005, Susan Chambers, Wal-Mart Internal
Memo, 2005] 
In fact, Wal-Mart has consistently increased spending on advertising more
than its spending on employee health care. Between 2002 and 2003, Wal-Mart
put more new funds into advertising than into health care. Wal-Mart
increased spending on advertising by $290 million, while only increasing
health care spending by $215 million for the same period. (note: this also
occurred in 1995-96, 1997-98,1998-1999). [Wal-Mart Annual Reports and 5500
Filings] 
One Out of Six Wal-Mart Employees Has No Health Care Coverage At All 

This is more than double the national percentage for large firms (firms with
over 100 employees). In fact, we estimate that Wal-Mart accounted in 2005
for more than 1 out of every 40 uninsured workers who are employed at a
large firm. [Susan Chambers, Wal-Mart Internal Memo, 2005; Wal-Mart Annual
Report; "Employer-Sponsored Health Insurance Coverage: Sponsorship,
Eligibility, and Participation Patterns in 2001," Bowen Garrett, Ph.D.,
released by the Kaiser Family Foundation September 2004]. 
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