Target drops coverage plans for part-time employees
Famed retailer Target has announced that it will be dropping its health insurance benefits for part-time employees. The company joins several other retailers that have opted to drop coverage for part-time workers in order to avoid some of the costlier provisions of the health care reform law. Target employees that lose their benefits from the company are likely to be able to find coverage through state and federal exchanges, but this coverage may be more expensive than what they were receiving through their employer.
10% of Target’s workforce will have to find coverage from state and federal exchanges
Approximately 10% of Target’s workforce is comprised of part-time employees. A part-time employee is defined as any person working fewer than 30 hours a week. According to the health care reform law, a full-time employee is classified as any person working at least 30 hours or more in any given week. Businesses must provide full-time employees with health insurance benefits but part-time employees are not privy to such benefits.
Target intends to help employees transition to new insurance policies
Target’s part-time workforce will not be left without any assistance, however. The company will provide all full-time employees with $500 as well as access to consulting services that can help them enroll for coverage through state and federal exchange programs. Those that are losing coverage can find health insurance policies through these exchanges and take advantage of navigators, who exist to help consumers find the policies that are appropriate for their health needs and their financial capabilities.
Exchanges may provide part-time employees with better access to insurance plans
Target notes that the benefits landscape is changing. According to the retailer, the number of employees enrolling in the company’s part-time health insurance plan has reached record lows. The retailer suggests that continuing to provide coverage through this plan is no longer financially feasible due to the low number of people that are actually covered through the plan itself. As such, Target is encouraging employees to seek out the coverage they need through insurance exchanges, which may be able to provide them with better options concerning the types of coverage they are interested in.