Jodee Kozlak, Target’s executive vice president of human resources, explained the decision in a blog post.
The Minneapolis-based Target said only 10 percent of employees participate in the part-time health plans. Instead of paying for those options, Target plans to help employees navigate the new health insurance exchanges established under the Patient Protection and Affordable Care Act.
In addition to receiving one-on-one counseling to sign up for health plans on the exchanges, affected employees will receive a $500 cash payment, according to Ms. Kozlak. Target’s decision only affects the part-time health insurance plans, as part-time employees will still be eligible for other company benefits.
“As a company, Target continuously reviews our programs and offerings and makes updates based on what makes sense for our team members, our guests and our business,” Ms. Kozlak said. “And we focus on doing this in the most thoughtful way.”
Target is not the only large employer to scale back on part-time health coverage. Last year, Home Depot and Trader Joe’s both ended health plans for part-time workers and directed them toward the exchanges.
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