Washington Post Examines Wal-Mart’s Shift in Health Coverage for Employees

The Washington Post on Friday examined how Wal-Mart -- "[o]nce vilified for its stingy health benefits" -- has become "an unlikely leader in the effort to provide affordable care without bankrupting employers, their workers or taxpayers in the process," the Post reports. According to the Post, "At a time when other firms are scaling back or eliminating health coverage, Wal-Mart has made a serious dent in the problem of the uninsured." Figures released on Friday show that 5.5% of Wal-Mart employees are uninsured, compared with a nationwide rate of 18%.

The Post reports that the company is "doing in the real world what many in Washington are only beginning to talk about." For example, Wal-Mart has implemented "many of the innovations that experts say will lead to higher-quality, more efficient care," such as using electronic health records, partnering with "prestigious organizations" such as the Mayo Clinic, and "targeting costly health problems" such as obesity and premature births. Many workers have enrolled in high-deductible health plans, and the company provides an upfront credit of between $100 and $150 for medical expenses. From 2007 to 2008, enrollment in high-deductible health plans among workers ages 16 to 24 increased by 78%. Linda Dillman, the Wal-Mart vice president overseeing the health plan, said, "We're seeing utilization on types of care you would hope," such as checkups and generic drugs. She added that plan members are "managing costs at the same time." According to the Post, Wal-Mart's "nearly universal insurance rates" also rely on the government and other employers, as 52% of employees are covered by a Wal-Mart plan.

The Post looked at steps Wal-Mart has taken to affordably increase coverage after the company in 2005 received criticism for its health benefits for workers. According to the Post, "for all of Wal-Mart's achievements, the story of its immersion in the world of health policy is also a warning about the depth and breadth of one of the thorniest challenges facing the country today" (Connolly, Washington Post, 2/13).