Target Scales Back on Health Coverage

By: Associated Press Email
By: Associated Press Email

NEW YORK (AP) - Target Corp. says it will no longer be offering health care coverage for its part-time workers.

The discounter is citing new options now available through health care exchanges under the Affordable Care Act.

The discounter, based in Minneapolis, says the majority of its part-time workers who have been eligible for its health care insurance coverage don't enroll. In fact, less than 10 percent of its total employees of 361,000 take advantage of the part-time plan. It says it will stop covering the part-time workers beginning April 1.

Target says part-time workers who are currently enrolled in the health care plan and are losing access to coverage will be given a $500 cash payment.

Other large employers like UPS are scaling back health coverage by dropping spouses from their employee plans if they are able to get insurance through another employer.


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