Many Target Employees Now Searching for Health Insurance

Part-time employees working at Target stores are searching for new health insurance policies right now.  As of April 1, Target’s part-timers are no longer eligible for the company’s health insurance plan.  This information comes from Bloomberg’s Alex Wayne in the article “Target to Drop Health Insurance for Part-Time Workers.”  They are following in the footsteps of Trader Joe’s, Home Depot, and other large retailers in the U.S.  Last year, the company had more than 361,000 workers.  They would not specify how many of those workers are part-time, which means that they work fewer than 30 hours a week.  But Target did say that only 10% of their part-time employees actually opted to take the health insurance offered to them.  This could be because they are students on their parents’ plans, have a spouse with health insurance, or forgo having insurance altogether.

Target is making these changes because of President Obama’s U.S. Patient Protection and Affordable Care Act.  Companies with more than 50 employees must offer health insurance plans to their full-time workers or they will be penalized.  Most Americans will also be penalized if they are not insured.  But Target insists that their part-time workers will be better off searching for their own health insurance plans.  If they qualify for a government subsidy, they can buy a plan from a health insurance exchange and pay less than they would with Target’s plan, according to the company.  This allows both the employee and the company to save money.  It’s not apparent how many of these Target workers will qualify for a subsidy though.  Those who don’t qualify might end up paying more for their health insurance than they did with Target.  If you are looking for a cheap health insurance plan, you can receive affordable quotes here.

Employees shopping in the health insurance exchanges have until the end of March to meet the open enrollment deadline.  This lines up with the end date of Target’s insurance plan for their part-time workers.  Target insists that people will not have their hours cut just so that the company no longer has to offer them health insurance plans.  They say that this will only apply to those who are already part-time, but only the employees will know if this holds true.  If it’s true that only 10% of their part-timers opted for company health insurance anyways, this change may not make a large impact overall.  But with the company withholding figures on the number of part-time workers and those close to the cusp of 30 hours, I’m not sure how many people truly will be affected by this health insurance change.

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