Target To Stop Offering Health Care To Part-Time Employees

The retail giant is attempting to change its medical coverage before certain Affordable Care Act regulations take effect.

Rick Wilking / Reuters / Reuters

Target is going to stop offering health care to it's part-time employees starting April 1, NBC reports.

Target stated that "by offering them insurance, we could actually disqualify many of them from being eligible for newly available subsidies that could reduce their overall health insurance expense."

A facet of the Affordable Care Act set to begin in 2015 states that companies with 50 or more employees could be fined $3,000 per-employee if they fail to provide all full-time workers with affordable health care. This decision also comes after Staples was accused of cutting employee hours as a preemptive measure against the upcoming changes in health care law, causing outrage among their employees. Home Depot and Trader Joe's have also recently announced plans to cut benefits for part-time employees.

Target executive vice president Jodee Kozlak has stated that the company will provide a $500 dollar cash payment to all employees that are about to lose their health care. Less than 10 percent of the company's 361,000 employees currently participate in the insurance plan that is being discontinued, the company said in a blog post.

The retail giant also announced today that it would be laying off 475 employees and keep 700 open positions unfilled.

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