Health hit for new Wal-Mart workers

Wal-Mart Stores Inc. will stop offering traditional low-deductible health plans for new hires next year in favor of low-premium plans with higher deductibles, a move it says will put more health care money and choices in the hands of its more than 1.3 million U.S. workers.

Union-backed Wal-Mart critics, including WakeUpWalMart.com, who made the change public Tuesday based on internal company documents, claimed the nation's largest private employer was pushing the rising costs of health care onto its workers.

Wal-Mart confirmed that it will drop traditional plans for new hires beginning Jan. 1. Those plans offer annual deductibles as low as $350 for a yearly premium of $1,043 for single-person coverage.

New hires from next year will only be able to sign up for one of two plans that have premiums as low as $11 a month but annual deductibles starting at $1,000 for most medical expenses as well as separate deductibles for special events, like outpatient treatment, and for prescriptions.

One of the new plans also includes a health savings account, which allows an employee to put money aside tax-free in a special account reserved for health costs.

Wal-Mart's current employees will still have the option of coverage under the traditional plans, according to the company benefits guide for 2007.

AP