Target Dropping Health Insurance for Part-Time Workers

Latest company to cite new health care law in doing so

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Target will stop offering health insurance benefits to part-time employees this spring, the latest company to do so and cite the new health care reform law as the reason.

The retailer said on its website Tuesday employees “may prefer” to use the new insurance exchanges at the heart of the law. Target will discontinue its coverage for part-time workers on April 1.

“Our decision to discontinue this benefit comes after careful consideration of the impact,” said Jodee Kozlak, the vice president of Target’s human resources, adding that less than 10 percent of part-time employees enroll in the company’s health insurance.

24 comments
mike8675309
mike8675309

Has any Target employees received the claimed $500 yet?  It was said to help with getting insurance but since everyone had to have insurance by April 1st, that means people have already paid out.  I haven't heard of anyone actually getting any money from Target for this yet.

chauns
chauns

"Target also said it will not limit hours of team members as a result of the benefits change."


Unfortunately they already did that prior to making this press release, at the store people I know work at they cut all non-management workers to under 29 hours a week, and were told it was a corporate directive.

dejen
dejen

This is just a speed-bump on the way to #15dollarsanhour. We're all gonna be #rich. #ACA.  #Obamaisgod

brightcluster
brightcluster

This isn't even bad if you read everything they left out.

brightcluster
brightcluster

They are actually firing a few hundred people and hiring the half time employees full-time and giving them full coverage insurance.  Read it!

PennsyltuckyPhillips
PennsyltuckyPhillips

Yes! We're seeing paltry part-time benefit packages disappear into obsolescence.  Nobody should be surprised that part-time employees at Target showed less than 10% participation:  The ACA marketplace has BETTER coverage and better tax benefits.  Target's move merely proves that ACA is working, and I'm happy for all the part-timers, temp workers, contract employees and self-employed who are no longer stuck with whatever crappy, incomplete "benefit packages" they were formerly offered (usually a savings account allowance and a discount medicine card).  ACA has indeed been an enormous boon to American workers.

PennsyltuckyPhillips
PennsyltuckyPhillips

@RototimeTarget is doing the best thing for their employees.  Haven't you ever been a part-time or casual employee?  Those benefits were just for show and nobody used them.

mike8675309
mike8675309

@PennsyltuckyPhillips health insurance affects individuals and as such it is nearly impossible to apply motivations or benefits to a group.  For my wife and I this will mean that we need to take the insurance from the company I work for instead of from Target.  That will mean that even if we never need medical care during the year, our costs will increase by $5305.68 per year ($442/month).  And because the part time plan was a standard health plan, and my current employer plan is an unfunded HSA plan any medical expenses (other than preventative) result in additional costs until we hit the $3000 deductible.    So worst case, we could see additional health care costs of over $8000 per year.


Now that is what a married couple with grown dependents has to deal with.  And maybe it's an adjustment we all just need to live with and eventually we'll just think it's normal to pay so much for health insurance.  But that doesn't mean it doesn't hurt today and that there isn't a down side for a number of people.  You know, 10% of part time employees at Target is a heck of a lot of people.


Affordable insurance has been defined by the Federal Government.  As long as it costs less than 9.5% of your income, it is considered affordable.  

bryanfred1
bryanfred1

@PennsyltuckyPhillips I think you misread what they were saying.  Target provides coverage to people working longer hours; this was the optional package that employees could buy into through the company.  This party line about how bad every lost policy must have been is getting silly, but I guess that's what happens when there's no other argument to make.  Obviously plenty of Target employees thought it was good enough, but hey who are they to decide for themselves?  We clearly need to save them from making bad decisions.

Openminded1
Openminded1

@PennsyltuckyPhillips You are naive, or just stupid maybe a bleeding heart liberal too. It is because of Obama care these people lost any and all coverage, now they will not have any coverage that they can afford.

chauns
chauns

@PennsyltuckyPhillips @Rototime  


Unfortunately Target has created more Part Time employees by knocking non-management personnel down to 29 hours or less so they could kill insurance

PennsyltuckyPhillips
PennsyltuckyPhillips

@mike8675309@PennsyltuckyPhillips Let me reply to one of your statements, because I may be able to help.  You said, "For my wife and I this will mean that we need to take the insurance from the company I work for instead of from Target."  Sir, I cannot recommend strongly enough that you first GO to the government healthcare marketplace and compare rates there with what you will spend to get insurance through work.  My husband and I are in exactly the same position; the health benefit "plan" through my part-time work is only available if I work a certain number of hours a month, so not a viable option.  My husband's employer only helps with his health insurance premium, and adding me was additional $753/month from his paycheck -- a HUGE chunk of his pay.  Well, I found 22 better options at healthcareDOTgov.  Even the Platinum plan with zero deductible was cheaper than me staying on his employer insurance.  By going on a Silver plan with slightly higher deductible yet lower prescription copays, I am saving us over $300 a month.  If I had been willing to go back to a plan where I needed referrals, I could have saved us $400/month.  Yes, I know insurance affects individuals.  My state's plans may be better (Pennsylvania).   But one of the BEST aspects of ACA is that you are no longer at the mercy of your employer's insurance broker.  Please at least go see.

PennsyltuckyPhillips
PennsyltuckyPhillips

@Openminded1 what I am is smarter and more informed than you are, "open"minded.  I am also a former business owner and current temp worker with a new, excellent marketplace insurance plan.  Only just last week, I declined the paltry insurance offered by the temp agency because it would have been contingent upon my working x number of hours per month.  As a part-timer i have often been offered similar plans -- they are usually minimal insurance packages that employers have around so they can CLAIM they are providing benefits, but which cannot be relied upon.  They are often from unfamiliar insurance companies that doctors have never heard of (and don't accept) and --more importantly -- they do not provide secure coverage.  Fall below X number of hours per week and COVERAGE LAPSES.    Obamacare was designed to replace such gimmicky "health benefits" and ensure that workers have coverage that workers control, not employers.  Try to keep up.  This is why we needed reform in the first place.  Target simply discontinued a part-timer benefit that wasn't useful and wasn't being used.

brightcluster
brightcluster

@Openminded1 You stupid moron. Read it and understand it before you call people names.  Another nonfactual GOP nut case.  This country needs a GOP enema.

mike8675309
mike8675309

@PennsyltuckyPhillips here is the problem.  In theory or what we have been told for tens of years is that the high cost of medical care was due to the high number of uninsured utilizing resources.  Thus my MRI that really should coast $2500 costs $5000 because the hospital needs the profits on my bill to cover the losses for uninsured.  Insurance has gone up because medical costs have gone up, at least that's what we're told.  Thus apparently the cost loop was because of un-insured.  So now we effectively force everyone to have insurance.  But medical costs don't go down and insurance costs go up.  In fact the government picked a number and said it's affordable if it is less than 9.5% or 8% of your income.  So what did the insurance companies do.  Raise up just enough so that they are a good 7 to 8% of the income for the average person in the county.  


If f I could pay for a private insurance plan using pretax income dollars, then I might be able to find one on the exchange that would save us.  But in the end it looks like the best I can do is to have me take a plan at work, and get a separate plan for my wife.  In that case rather than paying an additional $442 per month, it'll be an additional $232.  Note, this is nothing new.  The ACA doesn't give me the ability to buy insurance for myself.  I've always had that ability.  The difference is now, that in the past I had the option to carry no insurance, and now I can't do that.


The fact is that the Affordable care act has been disruptive to the industry and consumers with a significant impact on the expense of heath care for the consumer.  I have no idea if in the end this will result in more reasonable health care costs and that eventually the insurance costs can be a smaller part of our budget.  But I can tell you for a fact.  For me, today, I am not better off because of it and no one is going to be able to convince me otherwise.

PennsyltuckyPhillips
PennsyltuckyPhillips

@Openminded1@PennsyltuckyPhillips My, aren't you defensive now that you lost the argument.  You couldn't pay me to live in a condo apartment.  I own a 3000 sq foot home, free and clear.    I don't need to work, however (unlike certain people), I *like* to contribute, I want to be useful, and I would find your sort of lazing around rather dull.  So I completed training to be a hospice worker.  My sympathies to your wife, who apparently requires a Jaguar for consolation.

Openminded1
Openminded1

@PennsyltuckyPhillips @Openminded1 You are far from smarter then me, I retired when I was 52, Live in a fantastic condo 32 floors up over looking the Ocean. I take two vacations a year, put two kids through college and my wife drives a jag. I think I did well in life with some pretty smart moves  investment wise and in my career. How about you still at the Temp agency moron.

PennsyltuckyPhillips
PennsyltuckyPhillips

@Openminded1@brightcluster"Openminded" and Independent, eh?  Sounds as if you are independently suckered by rwmedia -- since you clearly did not bother to read past the headline and you prefer ad hominem attacks and name-calling to forming a reasoned argument.  I think you should find a new hobby besides trollinggg.

Openminded1
Openminded1

@brightcluster @Openminded1 You need to read and research, you will then realize ,it is you that is the moron, and a bleeding heart moron liberal who bought the Obama con. By the way I am an independent.