Posted in: Business

Walmart Ends Insurance For New Hires, Blames Obamacare


Walmart, the world’s largest retailer and America’s largest employer has announced that they will stop offering health insurance to new hires. Walmart is blaming the Affordable Care Act (AKA Obamacare) for the decision to deny healthcare to their newest employees.

Walmart currently employs more than 1.4 million workers. Walmart has declined to disclose how many workers would be affected by the change in policy.

One of the key provisions of the Affordable Care Act is the expansion of Medicaid to cover people who make under a certain level of income. Labor and Health Care experts are saying that a majority of Walmart’s workers will qualify for Medicare under the new law. If an employer has a worker that receives insurance through Medicare than their employer has to pay a fine. The fine is substantially less than the cost of health care for the worker.

Conservatives are arguing that this provision is where President Obama and Congress are trying to take over healthcare. By making the fine cheaper than providing healthcare to their employees it will force all of those employees who are of limited means into a government program.

Democrats counter that there has to be a mechanism to give health care to employees who make so little money that to pay premiums totaling thousands of dollars a month is completely cruel.

The Supreme Court recently upheld the individual mandate in the Affordable Care Act. With President Obama’s reelection and the Senate being held by the Democratic Party the law will be implemented in full with basically zero options for repeal. Top Republicans have even acknowledged that it may be time to move on from their platform of repeal and replace.

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67 Responses to “Walmart Ends Insurance For New Hires, Blames Obamacare”

  1. Bob DiNardo

    Let's see now, where I am on my boycott list: Chick Fil A, Denny's, Papa Johns, Hostess, Denny's & now Wal-Mart.

  2. Milinda Houlette

    This is just an excuse. Two thirds of Wal-Mart employees are not full time and so this is another ploy by them to line their pockets. Sam Walton will want some answers from all of you.

  3. Randy Keith

    WalMart should be broken up into wholesale and retail. It is a monopoly that has hurt this nation a lot. Their employees don't make enough money to get out of poverty and many qualify for public assistance. They are costing taxpayers millions of dollars. Maybe the government should charge WalMart for taking care of their employees!

  4. Sheri Gibson

    This is another excuse to pocket more and more of the profits.Walmart has very few full time employees..with a large majority being part time woirkers who are forced to rely on the goverment for assistance to put food on the table and to have any type of health care.Walmart needs to be put out of business.

  5. Kit Kaboodlies

    Maybe if they were spending less on healthcare they will up the wages. **cough cough** And maybe the fines should be send tot he medicare budget! Tooooooooo many companies for many years have cut cost with not layoffs but with benefits. If you want to point fingers point at the very industry that has been long overdue for cost regulation. HEALTHCARE! we wouldn't be in this boat if it wasn't for them. Insurance should have never been a part of being employed.. It should be privatized period! Just like our auto insurance.

  6. David Baer

    "premiums totaling thousands of dollars a month" I'm all for some good propoganda, but I'm pretty sure the average WalMart employee does not pay thousands of dollars a month for insurance.

  7. Lora LB

    "One of the key provisions of the Affordable Care Act is the expansion of Medicaid to cover people who make under a certain level of income. Labor and Health Care experts are saying that a majority of Walmart’s workers will qualify for Medicare under the new law. If an employer has a worker that receives insurance through Medicare than their employer has to pay a fine." — Once again, apparently someone thinking that Medicaid and Medicare of the same thing, which of course, they aren't.

  8. Lora LB

    "One of the key provisions of the Affordable Care Act is the expansion of Medicaid to cover people who make under a certain level of income. Labor and Health Care experts are saying that a majority of Walmart’s workers will qualify for Medicare under the new law. If an employer has a worker that receives insurance through Medicare than their employer has to pay a fine." — Once again, apparently someone thinking that Medicaid and Medicare are the same thing, which of course, they aren't.

  9. Kjera Barrett

    If they want good enough coverage as to where they could actually afford to GO yo the doctor when sick, they really would have to pay thousands. Ofcourse the "average" worker there does not pay this much, because they could never afford it. They don't even make thousands a month. So, instead, they get the lower plans that don't actually pay for much at all, and then they can never afford to go to the doctor when sick…

  10. Adrian Howley

    Walmart is the epitome of corporate corruption & greed. They need to be taken down.

  11. Kelly Maurer

    I am not a Walmart employee – but I do pay for my own family's health insurance – it's the cheapest plan I can find and it is more than $1,000 per month for basic coverage (no prescription coverage, no dental coverage). I am blessed to be able to afford this, but it about a third of my monthly budget nonetheless.

  12. Blamegirl

    1If they would just take a chunk from the Waltons, they could PAY for their own employees healthcare, instead of passing the cost to the taxpayer. Single payer is the only way!

  13. James B. Hixson

    Walmart is having to face the reality that their way of doing business is about to drastically change. Especially when we found out that Costco pays their people $15 – $17 an hour with benefits.

  14. Kathy Schuppe

    Yeah like I bet now their broke & will need food stamps & unemployment. One word for them greedy b@$!#rds.

  15. David Baer

    I work in the wonderful world of retail, though not WalMart. I pay a whole $100 a month for a very good insurance. If I get sick I go to the doctor and pay the giant $35 copay. Sure my company might be a little better than most, but the WalMart plan is not going to cost anyone thousands of dollars a month. It's jsut not intellectually honest.

  16. Bryan Tucker

    IT looks like WAL MART has decided to JOIN the other evil GOP SWINE,, in trying to screw AMERICAN WORKERS, I SHOPPED there a lot, but I am through with Wal mart, anything [TRUMP]Macys, Hostess, Chickfila, Papa Johns, CRAP, DENNYS, FOX, ANY KOCH BROS product, ETC ETC. DOn't BUY, watch, or SHOP any of these CLOWNS.

  17. Denise Krivitsky

    Come on Walmart… think we are so stupid to really buy your lame excuse?

  18. Tom Meadows

    Wal-Mart should have already been at the top of your list!! As a member of IWLU#433, we've agreed to boycott them for as long as I can remember. They've always avoided giving employees a full time position so that they didn't have to provide and benefits. I read 80% of their employees are collecting food stamps or some form of government assistance. That's pretty lame to intentionally keep your employees living in poverty so that you can squeeze out all of your competition in a community!!

  19. David Johnson

    I'll bet they didn't end the practice of taking out those "Dead Peasant" policies on new hires!

  20. Liberato Siat

    It has come to pass…….. It shouldn't be a surprise. It was talked about for four years. Weren't you listening?

  21. Mary Ellen McNally Herbeck

    You don't get to be 4 of the top 9 people on the Forbes 400 richest Americans by giving your employee's decent benifits

  22. Matt Whitlock

    Aren't you ignoring that Walmart is the only way many impoverished people can afford a subsistence level of living? Walmart has lower prices than pretty much any other store, so there is a benefit there too. Also, how do you figure that Walmart is a monopoly? It has a healthy number of very big competitors.

  23. Michael Gibson

    Target does the exact same things, they are just as bad. I am a little tired of people attacking only Walmart, they are just one more example of whats wrong with corporate America.

  24. Alexander Dufresne

    right Kit, health insurance was offered to employers way back when as a way to attract highly qualified employees. but it has become an albatross around the neck for everyone. the worst is abuse by healthcare providers who did unnecessary tests and procedures and hospitalization to run up the bill they could charge the insurance companies. it made some people feel like a "cash cow". now you must question everything they want to do to keep from being used as a guinea pig. this actually reduces the real help so many truly need. I could go on but maybe fb doesnt have enough space.

  25. Mark Banegas

    While I don't like Walmart, this movie was a bit of a sham. And it was hypocritical in that the film maker used zero union workers in making the film.

  26. Nathan Phoenix

    The top 8 members of the Walton family are worth more than the bottom 40% of Americans combined. That's 8 people worth more than over 100 million people combined.

    I think they can spring for some fucking health insurance without it hurting them too much in the wallet.

    For as much as Walmart costs all of us in government assistance to their employees, it would be cheaper for the government to just nationalize Walmart, up wages and benefits, and turn it into a profitable enterprise to help reduce the deficit.

    It's not like anyone is going to shed a tear for those 8 members of the Walton family that lost their family business.

  27. Mary Cotterell York

    I have been watching what WalMart has been doing for years.This doesn't surprise me that they would take the opportunity to blame someone else to rape the economy even farther than that they already have.

  28. Eston Mooney

    Well you better start walking to where ever you go, as Koch supplies about 40% of all oil that is refined into gas and diesel.They buy from the producers and sell to the refiners. I don't hear anyone bitching about the big profit the government makes off of all oil products in the form of taxes.

  29. Toby Lynn Bell

    The article correctly reads that the Afforable Care Act, would offer MEDICAID to people who are not making a decent income. THEN goes on to use the word "Medicare" twice. MEDICAID is not the same as Medicare.

  30. Butch Knouse

    Why don't they take their retail experience and go to work at Target, Shopko and K-Mart. No one complains about these companies, so they must be paying fat wages and benefits. LOL

  31. Butch Knouse

    You may not have a choice, Bob. If you only patronize companies who don't raise their prices to pay for Obamacare, those companies will go broke in a year.

  32. Chris Attwood

    what change is that? everyone knows working for Costco is a better job than working at Walmart, do you think all Walmart workers would get hired by Costco? no. and it's capricious to assume everyone can afford to shop at Costco, which is almost totally exclusive to upper middle class customers.

  33. Freddie Stracke-Porter

    Ok who ever typed this. There is a difference between Medicaid and Medicare. You have used Medicare, when obviously you mean Medicaid. If people are working and can get on the Medicaid program most of the time there is a premium to pay and a monthly spenddown so it may not be as cheap as everyone thinks to the individual. But sure does let the big business tycoons keep from paying any portion of the premium. Expecially if they can also keep their taxes from going up. But you can't really have both.

  34. Donnie Rosenbalm

    there are some places that have only walmart and to go to those other stores ,you would have to drtive 40 miles a day to work somewere else on 7.35 and hour. Lets see you might have enough to buy gas and have alittle left to eat on.

  35. Jeremy Eickhoff

    How is Walmart a monopoly? Please explain? There is no product at Walmart that is exclusive and cannot be purchased anywhere else. This decision falls squarely on Obama's shoulders, not Walmart's. You know what's costing taxpayers millions of dollars? Obamacare. Get a clue.

  36. Chris Christian

    Neither the tax payers nor the Walton's should be paying for healthcare, or cell phones, or _________.
    Healthcare is provided by healthcare professionals (people). Implying that you have a "right" to the services/labor of another person is tantamount to slavery.

  37. Christopher Russo

    I love how this article isn't linked to an actual news outlet. I call bullshit

  38. Adam Contreras

    I fail to understand where it becomes a business's responsability to take care of an employees healthcare.. when did a place of work suddenly become our nannies. It has always been offered as a "perk", now besides having the audacity to demand that a private business hire you for either your sex, the color of your skin or any other cause… as well as pay demands…. now healthcare as well? Is this what we've turned into? Demanding that someone take care of us? Or we demonize them…. daaaaamn…

  39. How about we stop blaming Bush for everything Barack Obama is doing

    Single payer is the only way? Says someone who has NEVER LIVED UNDER A SINGLE PAYER SYSTEM EVER! BTW, I HAVE and know many people who have. It's NOT the way to go, but you shall see soon enough. Maybe it won't be quite as bad in this generation, but your children sure will know it and probably curse you for it. Better hope you have good health because if you don't……….

  40. Bill Coleman

    That's funny Tom. I boycott as many Union stores as possible. I've read that 80% of union members are drones that follow mindlessly whatever their union Overlords tell them.

  41. Bill Coleman

    Nice logic. Because ONE company can do it then everyone should do it.

    If you don't like Wal-Mart shop somewhere else. Just know that Target, K-Mart, Sears, etc all do the same basic thing. For most American's they appreciate any and all efforts to keep costs low. That is done primarily through careful management of human resources. If people are unhappy with their employment at Wal-Mart they can always leave. Nobody has ever been forced to apply at, accept, or continue to work at Wal-Mart.

    Personally, I would much rather Costco pay their employees less and provide greater value for their customers.

  42. Anthony Joseph

    I can't read this article correctly due to poor grammar and sentence structure. Thanks interwebs!

  43. Adam Contreras

    I would save my breath. Some folks like the idea of being taken care of. No matter how many time you explain it, the need to have something given to you, especially if 1. it comes from someone else, and 2. that someone else has more than you do (no matter that they might have been working 80 hours a week for the past 10 years to make their business a success). The moment our politicians started referencing the "Class" system it became all to easy to blame the "haves"…. The Negative side of GREED.

  44. Barb Near

    Employment at Walmart could be a stepping stone to a better job. Do you choose to make a career of working at Walmart, McDonalds, etc? Improve your skills. No one can do that for you.

  45. Andre Lochin

    I don't think it is a monopoly either, but I agree it has hurt this country by bankrupting small retail stores ("mom and pap"). Where walmart comes, most other businesses go, that is why, in many places, walmart is the only retail store around. Not a good thing. Cheap prices have a hidden cost. Walmart achieve low cost by importing, mostly from China, which means walmart is one of those responsible for the offshoring of American manufacturing. So walmart also killed manufacturing jobs. Walmart is a plague for this country.

  46. Andre Lochin

    Bill, I trust that you never take a paid day off, do not use your company 401k match, and when sick, take a leave without pay. Right?

  47. Angie Malone

    Butch Knouse not true people have complained about target's benefits as well. I have never researched about Shopko or k-mart so I can't comment on that. Also I wonder about the accuracy of this article first it says Walmart employees will be getting medicaid then it says medicare, which is it?

  48. Shirley Morrill

    Hey Freddie, I tried to message you but silly fb is not allowing it, if you get a minute would you please fb me or call me 569-3955. Thanks

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