posted on May 21, 2006 05:30:45 AM
Target Transfers
More Health Costs
To Its Employees
By ANN ZIMMERMAN
May 20, 2006; Page A7
Target Corp. has changed its health-care plan so that employees are responsible for more of the costs and it is considering entirely eliminating its traditional health insurance.
The Minneapolis-based retailer last month introduced a health-savings account and a health-reimbursement account for its more than 300,000 workers. The changes, first reported in the Minneapolis Star-Tribune, have provoked worries among workers that Target is shifting more of the financial burden onto them to combat rising health-care costs.
Wal-Mart Stores Inc., Target's main rival, has taken fire for a bare-bones health plan that requires participating employees to pick up 30% of costs. But Wal-Mart has been sweetening its benefits to make them more attractive for its increasing number of part-time workers.
The shifts in Target's health-care plan, implemented last month, underscore that reining in health-care costs is a big concern for all companies. According to the Kaiser Family Foundation, health-care premiums paid by workers and their employers jumped 73% between 2000 and 2005.
In their search for ways to save money, many companies have turned to various forms of health-savings accounts, in which workers and companies set aside money to pay for medical care. Because the workers are paying the bills directly, the hope is that they will make fewer unnecessary doctor visits and will shop for the best rates.
Target spokeswoman Lena Michaud said the retailer told its workers that its traditional health plan might be discontinued. But she said a final decision hasn't been made.
"This is a long-term strategy that will help both us and team members [employees] save money by encouraging them to take greater control over their health-care spending," Ms. Michaud said.
Under its new plans, Target annually will contribute $400 for individual workers and $800 for families. Monthly premiums will drop to as little as $20 for individuals. But deductibles will be much higher than Target's traditional plan: as high as $5,000.
The other alternative is the health-reimbursement account, which is similar to health-savings accounts, except the employer funds them and they aren't portable. The premiums paid by the workers are higher than the health-savings accounts, but the deductibles are lower.
"These plans are great if you are healthy, wealthy or young," says Bernie Hesse, a Minnesota-based organizer for the United Food and Commercial Workers, which is trying to organize Target.
posted on May 21, 2006 06:41:10 AM
The problem with some of the savings accounts is that you lose any money put into it that you don't use. Something would have to be done about that, because how can you know what you will spend every year?
Ron
[ edited by WashingtoneBayer on May 21, 2006 06:46 AM ]
posted on May 21, 2006 05:10:24 PM
The "savings plan" where I worked was like that....use it or lose it. You'd be better off putting the monies in a bank, earning interest. You wouldn't have to go through the hassle of submitting receipts to beg for your own money.
posted on May 24, 2006 04:01:51 PM
Wow... surprise surprise... I expected Ron to say, "The piece of sh!t employees deserve whatever they get for working there." It is their fault isn't it Ron???
posted on May 24, 2006 05:23:30 PM
But we take out insurance and we dont necessarily submit any claim??
One good example is the homeowner policy.
/ lets all stop whining !! /
posted on May 24, 2006 06:07:51 PM
Ron,
I know you believed the middle and working CLASS American has had way too much and needed to be taught their place.
I know you supported DUMBO BUSH,HIS CONSERVATIVE LAWMAKERS ALONG WITH AMERICAN INDUSTRY. I WATCHED YOU SUPPORT THE CONSERVATIVES WHEN THEY SHOWED HOW THEY BELIEVED THEY WERE A HIGHER CLASS THAN THE AVERAGE AMERICAN.
AFTER ALL THE MAJORITY OF THE AMERICAN PEOPLE HAVE TO REMEMBER THIS. IN AMERICA NOW THE CONSERVATIVES ARE THE RULING CLASS THEY HAVE ALL THE POWER. TO THEM EVERYONE ELSE ARE JUST WORKERS. WORKERS THAT NEED TO LIVE IN FEAR FOR THEIR JOBS BECAUSE AT ANY TIME THEY CAN BE REPLACED WITH CHEAPER FOREIGN LABOR.
BUSH AND HIS CONSERVATIVE GOVERNMENT HAS SHOWN THAT THEY TAKE CARE OF THEIR BASE VERY VERY WELL. THE CONSERVATIVES HAVE MADE THEIR BASE MUCH RICHER. THEY HAVE ALSO SHOWN THAT THEIR BASE DOESN'T INCLUDE THE AVERAGE AMERICAN.
NOW RON IS BITCHING BECAUSE HE IS GETTING WHAT HE VOTED FOR AND MORE. THIS SIMPLE MINDED FOOL NEVER ONCE CONSIDERED HE REALLY WASN'T CONSIDERED PART OF THE CONSERVATIVE BASE. HE NEVER ONE CONSIDERED THAT THE CONSERVATIVES WERE USING HIM AND MILLIONS MORE LIKE HIM AS A PAWN TO GAIN POWER.
posted on May 24, 2006 07:40:51 PM
Bitching about what peepa? I have health insurance and it is the normal type where I pay and my employer pays.
In a way Rusty you are correct and I suspect deep down you feel that way or you wouldn't of even thought about it. People get hired in and should know what benefits they will be getting or not getting.
