About 30,000 Wal-Mart part-time employees will be losing their health benefits because the rising healthcare costs have caused the super store to make a budget decision.
For those workers that work fewer than 30 hours a week, they will no longer have health benefits. This effects 2% of the company's U.S. workforce, Wal-Mart said Tuesday, according to CNN.com.
More of Wal-Mart's employees signed up for health benefits this year than the company expected, which boosted the company's costs, according to the report. A lot of them would sign up for the cheapest plan, which deducts $18.40 per paycheck. Next year, it will go up to $21.90 per check, which is forcing Wal-Mart to make this decision.
"This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment," wrote Wal-Mart executive Sally Welborn in a blog post.
Obamacare requires everyone to have health coverage, so for the employees, the cheaper route is receiving health care from their employer.
The spike in healthcare cost has risen to $500 million, the company said.
A Wal-Mart spokeswoman said the company will not limit the hours employees work as a result of the benefits change.
Other companies that have done the same are Home Depot, Target and Trader Joe's.
