[Read if you have the time] I like playing devils advocate (especially on Facebook - it really gets people riled up) so I put together some numbers. Google states that Wal-mart employs 1.4 million people. Wal-marts earnings reports have shown the following over the last four quarters: Q4/13 profit: 31.18 billion Q1/14 profit: 34.01 billion Q2/14 profit: 30.05 billion Q3/14 profit: 32.39 billion [Total: 127.63 billion] [Again, profit, not revenue] (wikinvest/stock/Wal-Mart_%28WMT%29/Data/Key_Metrics) Health insurance costs: Average single and family premiums for covered workers in the ... Retail ($5,355 and $14,979) industries are lower than the average premiums for covered workers in all other industries kff.org/report-section/ehbs-2014-section-one-cost-of-health-insurance/ Most often, employers require that workers make a contribution towards the cost of the premium. Covered workers contribute on average 18% of the premium for single coverage and 29% of the premium for family coverage, the same percentages as 2013. kff.org/report-section/ehbs-2014-summary-of-findings/ If you combine all other pieces of data, making only the assumptions as follows: 1. This assumes Wal-mart pays $0 currently for health insurance to their employees - unlikely (and untrue, which will lower the % of extra cost significantly) 2. Some of the following will assume the employee pays $0 toward their insurance - unlikely 3. The following assumes Wal-Mart would not receive a discount on their premiums under the 2014 rate - also unlikely.. when is the last time you purchased 1.4 million of anything and didnt receive a discount? 4. The following assumes all-or-nothing, meaning, Wal-Mart either has all-single employees or all-family employees. The numbers will increase/decrease based on real life factors. 5. The following assumes that all numbers provided from Google, Wal-mart, KFF.org are correct. Some are obviously rounded which will have an effect on % and $. 6-19. [Reserved for other assumptions, etc] IF Wal-mart paid the entire annual premium on health insurance for each one of their employees - and their employees only - it would cost somewhere near 7.497 billion dollars. [Note: This is 5.8% of their annual profit.] IF Wal-mart offered the average single-user health insurance for each one of their employees - and paid the average with the average employee contribution - it would cost somewhere near 6.147 billion dollars. [Note: This is 4.8% of their annual profit.] IF Wal-mart paid the entire annual premium on health insurance for each one of their employees - and their entire family - it would cost somewhere near 20.97 billion dollars. [Note: This is 16.4% of their annual profit.] IF Wal-mart offered the average family-plan health insurance for each one of their employees - and paid the average with the average employee contribution - it would cost somewhere near 14.889 billion dollars. [Note: This is 11.6% of their annual profit.] Im having a hard time believing that Wal-Mart has to cut benefits for its employees - OR - why they havent IMPROVED coverage to their employees. P.s. Sharing is caring. P.s. Life isnt all about profit. P.s. This would improve public relations and employee retention.
Posted on: Tue, 14 Oct 2014 02:18:35 +0000
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