Wal-Mart Enrollment Shows Healthy Trends

According to data collected in a survey during the fall 2007 open enrollment period, more than 30,000 associates who chose Wal-Mart’s coverage for the first time reported being previously uninsured. However, during the past year, the percentage of associates who reported having no coverage declined from 9.6% to 7.3%, according to the retailer.

Last fall, Wal-Mart announced what it termed “significant changes” to its health care benefits this year, including an increased number of plan choices and premium choices and a decrease in prescription drug prices (see Wal-Mart Shakes Up 2008 Health Care Benefits ). The giant retailer – also the nation’s largest private sector employer – has been criticized in recent years for its choices in providing health care to its workers (see Wal-Mart to Restrict New Hire Health Coverage ).

“Covered” Up

Wal-Mart Stores, Inc. says that the number of associates who now have health care coverage through its new associate-tailored plans for 2008 or another source has increased from 90.4% to 92.7%, and that the number of uninsured associates decreased by more than 20%, compared to one year ago.

Wal-Mart’s open enrollment survey, with 802,091 participants, indicated that as of November 9, 2007, 92.7% of associates have health care coverage, though only about half (50.2%) have coverage through Wal-Mart’s plan. Just under a quarter (22.3%) have coverage through their spouse, while 7.3% are uninsured. Other sources included Medicare (4.3%), parents, school or college (4.2%), other/previous employer (3.2%), individual policy (2.4%), VA or military (2.3%), Medicaid (1.9%), state program other than Medicaid (1.2%), and another source than those listed above (0.7%).

According to data collected in a survey during the fall 2007 open enrollment period, more than 30,000 associates who chose Wal-Mart’s coverage for the first time reported being previously uninsured. However, during the past year, the percentage of associates who reported having no coverage declined from 9.6% to 7.3%, according to the retailer.

In a survey conducted during Wal-Mart’s fallopen enrollment period, eligible associates who declined Wal-Mart’s coverage were asked why they had declined the coverage – and gave the following responses:

• 85.3% had coverage elsewhere
• 67.6% said that Wal-Mart was not their primary household income source
• 47.3% said that Wal-Mart was not their primary source of personal income
• 44.8% – had coverage through their spouse
• 38.3% – said they were students
• 8.5% – had coverage through their parents, college, or a trade school

Roughly one-in-ten (11.7%) said they couldn’t afford the premiums, and 3.1% said they didn’t need coverage.

Coverage Study

Wal-Mart also announced that the company will commission a study to better understand associates who have declined coverage by researching why they choose to go without health coverage and identifying things that can be done to encourage them to accept health care coverage in the future.

According to Wal-Mart, in the recent open enrollment period, 1,086,881 full-time and part-time associates were eligible for health benefits, representing 79% of the workforce. This year Wal-Mart added more personalized choices, lower deductibles, pre-deductible health care credits and a $4 co-pay for more than 2,000 covered generic prescriptions.

Additional information and graphs breaking down the findings of the open enrollment survey are at http://www.walmartfacts.com/Media/128454820971833839.pdf