Health Insurance boosted by Wal Mart

By KEVIN FREKING
THE ASSOCIATED PRESS

WASHINGTON - Wal-Mart Stores Inc. said Monday it will relax eligibility requirements for part-time employees who want health insurance, allowing an additional 150,000 workers to gain insurance coverage if they choose. The retailer also is decreasing co-pays on generic medications from $10 to $3 and expanding health benefits to children of part-time associates.

Until now, part-time employees have had to work for Wal-Mart for two years to qualify for employer-sponsored insurance. Beginning next month, they will have to work at the company for one. The coverage also will extend to their children.

The changes were announced by one of the company’s vice presidents, Susan Chambers., at a meeting of business and health care executives.

Wal-Mart has been strongly criticized by unions and others for a health plan they say is lacking. However, Chambers said Wal-Mart’s health insurance costs have risen at a rate of 19 percent annually over the past three years. She also noted few companies extend health coverage to part-time workers.

‘‘Keep in mind that covering part-time employees is not the norm in retail,’’ Chambers said. ‘‘But every American deserves health care, and we want to lead by taking these steps. We hope that others in the retail community will work with us to do the same.’’

Chambers did not provide details about how much the change would cost the company. She said it’s now picking up about 70 percent of the costs for each employee’s health care and she expects that percentage to increase.

Chambers said the version of the health plan that the company expected most employees to sign up for would be available for $23 a month. Workers’ children would be included for $15 more, whatever the size of the family.