(NEW YORK) — About 30,000 people who work part-time at Walmart are going to lose their health insurance coverage.
Citing rising costs, Walmart said Tuesday that it had no choice but to end medical benefits for employee who work less than 30 hours weekly.
This move affects about five percent of Walmart’s U.S. workforce, estimated at 1.3 million.
Walmart, the nation’s largest employer, said in a blog posting, “Like every company, Walmart continues to face rising health care costs. This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment.”
Meanwhile, Walmart is also lowering the boom on workers with existing coverage by raising their premiums.
The discount retailer says it health care costs are rising by $500 million.
Meanwhile, Forbes reported last week that the four children of late Walmart founder Sam Walton are each worth an average of about $35-$38 billion.
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