Home Depot Inc is shifting medical coverage for 20,000 part-time workers to new public marketplace exchanges
ahead of new benefits requirements under Obamacare, a spokesman said on Thursday.
The world's largest home improvement retail chain announced its move shortly after a similar announcement from Trader Joe's Co
, a popular privately held grocery chain, according to Reuters
Home Depot's change would affect the roughly 20,000 part-time workers who previously had chosen the limited liability medical plan the company offered, spokesman Stephen Holmes said.
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After Dec. 31, companies can no longer offer those plans under the Affordable Care Act, also known as Obamacare.
"We're going to shift them over to the public exchanges, where there are more options," Holmes said.
The public exchanges being set up under the law will allow individuals to buy government-subsidized healthcare based on income. Enrollment begins on Oct. 1.
Until now, many restaurants and retailers offered workers limited liability plans that often provided less than $5,000 in coverage
Home Depot's plans for part-time workers provided coverage of up to $20,000 depending on the plan and were administered by Aetna Inc.
Experts have said exchanges would provide more comprehensive coverage that may not cost more because government tax credits will help some workers offset premiums.
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Some employers are opting to offer coverage through private health insurance changes.
Walgreen Co, the largest U.S. drugstore, and more than a dozen other large employers have said they would offer their employee insurance for 2014 through the Aon Hewitt Corporate Health Exchange
Home Depot employs about 340,000 people and will continue to offer healthcare benefits to full-time employees, who will be paying more for that coverage next year due to higher healthcare costs, Holmes said.
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