Has anyone else noticed how the left has pretty much left Wal-Mart, the pre-2009 nexus of all capitalist evil, alone during the past few years? That’s because the chain and its CEO endorsed ObamaCare that year.
In an editorial today, the Wall Street Journal looks at how the chain’s sellout to ObamaCare has ended up hurting its employees (bolds are mine):
Last week the largest private U.S. employer announced that it would no longer offer health coverage to part-time workers and would sharply increase premiums for its other “associates.” Wal-Mart says the changes are a response to climbing health-care costs, not the Affordable Care Act per se, though even this is an indictment: The bill that the company claimed would help isn’t helping. But Wal-Mart’s errant political judgment is less important than what its crash benefits diet says about the future of employer-sponsored insurance.
Under the company’s new policy, new workers who put in fewer than 24 hours a week on average won’t qualify for any Wal-Mart health plan, while those under 33 hours won’t be able to add a spouse. Other premiums and deductibles will jump in 2012, some by as much as 40%.
While the company won’t disclose how many of its 1.4 million employees it does cover, Wal-Mart is unusual in that it belongs to the 42% of large businesses that offer coverage to part-time workers, according to a 2011 Kaiser Family Foundation survey.
That and other concessions were part of Wal-Mart’s mid-2000s campaign to placate its liberal critics, a bid that reached its apotheosis in its embrace of ObamaCare. Mr. Duke’s 2009 endorsement was co-signed by Andy Stern of the Service Employees International Union and John Podesta of the Center for American Progress, the Obama Administration’s outside political-policy shop. Expect these political friends with benefits to turn on Wal-Mart now as it is forced into more such triage to manage its health costs, like the rest of the business world.
The larger danger is what happens when the new law’s subsidized insurance exchanges become operational in 2014 and scramble the labor market. The Obama plan exposes businesses to “pay or play” penalties that are supposed to keep the employer market from unraveling and that Wal-Mart supported in part to shackle its smaller competitors. But once the regulations are finalized, many businesses may look rationally at the new incentives and conclude that shedding their health costs and paying the penalties is cheaper than the status quo.
This will be especially true in industries with large numbers of low-wage, low-skill workers—like hotels, restaurants and, yes, retail …
… It’s hard to miss the irony in the Obama health-care revolution eating its own children, but other business leaders looking on agog at the brave new insurance world that Wal-Mart helped to create probably have another word for it.
Another common employer response will be to avoid the penalties entirely by ensuring that part-time workers are limited to fewer hours than ObamaCare’s threshold coverage level, which appears to be 25 hours per week. James Sherk at Heritage (“Obamacare Will Price Less Skilled Workers Out of Full-Time Jobs”) predicts that many employers will look at the cost structure imposed on them by having full-time lower-wage workers and conclude that they can’t afford to have very many, if any, full-time low-wage workers. Wal-Mart will almost certainly be among those who will figure this out — scratch that, they’ve probably already figured it out.
Such workers are going to have to get two part-time jobs to earn the equivalent of a full-time paycheck — if they even can do so in this flat economy — and still won’t have employer-sponsored healthcare coverage (nor will they earn overtime for working more than 40 hours, which they would if they worked at one place).
So-called “friends” of the low-skilled workers like the Obama administration, Wal-Mart, and organized labor are causing them far more harm than the eeeeeevil 1% (whom Obama hypocritically accesses as a campaign-finance ATM) against whom the “occupy” movement is currently demonstrating.