Effective April 1st, Target announced to day that it would no longer offer healthcare coverage to its part-time employees. As The Hill reports [4], Target's HR executives 'spun' the decision as good for the employees..."by offering them insurance, we could actually disqualify many of them from being eligible for newly available subsidies that could reduce their overall health insurance expense." The company will provide a $500 cash payment to "minimize disruption," and specifically calls out Obamacare as "providing new options... that we believe our part-time members may prefer."Of course, just for good measure, Target is cutting 475 jobs and chooing not to fill a further 700 open positions - again, we presume, to minimize disruption (to their bottom line).
Via The Hill, [4]
In a blog post on the company’s website, Jodee Kozlak, the executive vice president of human resources, framed it as a positive development for part-time employees of the company.
“The Health Insurance Marketplaces provides new options for healthcare coverage that we believe our part-time members may prefer,” she wrote. “In fact, by offering them insurance, we could actually disqualify many of them from being eligible for newly available subsidies that could reduce their overall health insurance expense.”
...
The company’s new policy goes into effect on April 1, 2014. Consumers have until mid-March to sign up for ObamaCare to be eligible for coverage this year.
Target said it has a transition program in place to “minimize any disruption and reduce confusion” for those who will no longer be eligible for the company’s healthcare plan.
The company will provide a $500 cash payment to employees losing coverage, as well as access to a benefits consultant.
Target stressed the company would not be reducing hours for any employees.
As usual, it's for your own good...
And as if that was not enough, Target just announced:
- *TARGET CUTTING 475 JOBS AT HEADQUARTERS: STAR TRIBUNE
- *STAR TRIBUNE ALSO SAYS TARGET NOT FILLING 700 OPEN POSITIONS