My Essay About Walmart

2893 words - 12 pages

FINAL ASSIGNMENTSubject: Business Ethics - BUS 6590"HEALTH AND WELFARE BENEFITS AT WAL-MART"Topic summaryWal-Mart Stores, Inc. was founded in 1962 by Sam Walton in Arkansas, United States. On 31/10/1969, Wal-Mart was transformed into a joint-stock company and was officially listed on the New York stock market in 1972. In 2005, Wal-Mart reported that only 43 percent of the 1.3 million collaborators were supported health insurance. The remainders did not receive support since they failed to meet the working-time requirements, whether after all, many of them were qualified. And a part of some who did not enroll in the health insurance program of Wal-Mart due to the fact that they have already had the health insurance from their wife (or husband), their parents, or from previous work.The lack of health insurance also extended to children of collaborators working for Wal-Mart. Among these dependents, 27 percent were based entirely on the health care services sponsored by the government (Medicaid and health insurance programs for children of state), and 19 percent of those children did not have any health and welfare benefits at all.Before 2006, only employees who work full time got insurance for their children. Thus the total of only 54 percent of Wal-Mart employees' children were allowed to participate in the health insurance program of Wal-Mart. Medicaid was the primary health care payment source for 4 percent the collaborators of Wal-Mart (compared to 5 percent of workers across the country). Once the senior workers and their children depend on the government and hospital's health insurance program, the cost of such medical care will transfer from businesses to the taxpayers. The criticisms over Wal-Mart are not only focus on the number of workers registering health insurance, but also on the insurance cost the employee must bear, which preventing them from joining insurance program. To improve the situation, Wal-Mart offered several insurance plans with various insurance cost and insurance level. However, on average, the collaborators involved in Wal-Mart's health insurance program usually had to spend about 8 percent of their income for health care, including premiums, deductible amounts, and the external costs. This figure is almost double in comparison with other nations' average. Any workers who wanted to buy insurance for the wife (or husband) must pay the average of 13% of their income for health care.In 2005, Wal-Mart tried to find ways to help employees insured more easily by offering the Value Plan. The premium cost was lower but workers still had to pay relatively high additional costs. The critics doubted the value brought about by the Value Plan for Wal-Mart's employees.Wal-Mart and other retail companies are facing with a number of obstacles in providing medical welfare. Frequently, the cost for medical welfare is the same whether the employee works full-time or part-time. This factor has increased the total costs for businesses that...

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