Wal-Mart Watch Statement On ‘Better Health Care Together’ Campaign
For Immediate Release
Wednesday, February 07, 2007
Washington, D.C. - Wal-Mart Watch Executive Director David Nassar issues the following statement in response to the “Better Health Care Together” campaign announced at today’s press conference with SEIU and Wal-Mart Watch President Andy Stern, Wal-Mart CEO Lee Scott, and other business and labor leaders:
Wal-Mart’s unaffordable plan is part of our nation’s health care problem, and we’re pleased that they want to be part of the solution. All Americans should be encouraged by collaboration between unions and business in search of true, comprehensive reform of the nation’s healthcare delivery system. But Wal-Mart’s participation in the discussion does not alleviate its responsibility for providing decent affordable and accessible coverage to its employees until a better, more comprehensive, long term solution is reached.
Background On Wal-Mart’s Employee Health Care Plan:
- Fewer Than Half Of Employees Covered. According to Wal-Mart’s own website, “In January 2006, the number of associates covered by Wal-Mart health care insurance increased to 46%.” [Walmartfacts.com]
- Coverage Lags Far Behind National Average. Nationally, 63 percent of workers in large firms (200 employees or more) receive their health benefits from their employer. More than 80 percent of Costco workers are covered by their company plan. [Employer Health Benefits 2006 Annual Survey, The Kaiser Family Foundation and Health Research and Educational Trust; New York Times, 10/24/05]
- Neither Affordable Nor Accessible. Wal-Mart provides health care options to their employees and families that have a deductible of $1,000 for individuals and $3,000 for families. Wal-Mart employees must endure long waits to qualify for benefits: six months for full-time employees and one year for part-time employees. [Wal-Mart 2006 Associate Benefits Book; Wal-Mart Press Release, 4/17/06]
- Waiting Too Long To Qualify. The Wal-Mart average for full-time workers to qualify for benefits is six months, compared to the retail average of 2.7 months and the average waiting period for large firms (200 or more workers) of 2 months. [Wal-Mart 2006 Associate Benefits Book; The (Montreal) Gazette, 4/18/06; Employer Health Benefits 2006 Annual Survey, The Kaiser Family Foundation and Health Research and Educational Trust]
- Hidden Charges. The Wal-Mart 2006 Associate Benefits Book details the specific policies of the Associate Medical Plan (AMP) and reveals that the plan is filled with additional charges. Standard services - including office visit co-pays, emergency room visits and ambulance services, per-event deductibles, and pharmacy co-pays—are not applied toward the standard deductible. For example, in addition to the standard deductible, a $300 pharmacy deductible must be reached, a $1,000 in-patient facility deductible per visit must be paid, and a $500 out-patient surgical facility deductible per visit must be paid. [Wal-Mart 2006 Associate Benefits Book, pp. 32 and 38]
- High Out-Of-Pocket Premiums. According to the Center for a Changing Workforce, in 2003, Wal-Mart employees paid 41% of insurance premium costs. At the time of the report, Costco employees paid about 10% of premium costs. Nationally, workers today pay an average of 16% of premiums for single coverage and 27% of premiums for family coverage. [Employer Health Benefits 2006 Annual Survey, The Kaiser Family Foundation and Health Research and Educational Trust; Wal-Mart and Healthcare: Condition Critical, Center for a Changing Workforce, 10/26/05]
- Less Money For Benefits Than Other Firms. In September 2003, Wall Street Journal reported, “Last year, average spending on health benefits for each of the company’s roughly 500,000 covered employees was $3,500, almost 40% less than the average for all U.S. corporations and 30% less than the rest of the wholesale/retail industry, according to estimates by Mercer Human Resource Consulting, a unit of Marsh & McLennan Cos.” [Wall Street Journal, 9/30/03]
- Confusing To Even The CEO. In a speech before the National Governors Association, Wal-Mart CEO Lee Scott “conceded that one of Wal-Mart’s new efforts, the introduction of health savings accounts, had gotten off to a slow start because setting up the accounts was ‘too complicated.’ He said he found the process confusing and had not yet set up his own account.” [New York Times, 2/27/06]
