Health care: Wal-Mart employees to pay

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Agencies:  Nov 12 2012, 17:18 IST
in decades, is intended to make healthcare less expensive but critics question if it will succeed and it will also take years to fully implement. In the meantime, Wal-Mart and other large companies are trying to control their healthcare costs, which have been rising an average of more than 6 percent per year.

Wal-Mart pays for preventive care such as routine checkups. However, workers must pay deductibles of at least $1,750 before Wal-Mart covers 80 percent of the cost of other care such as doctor visits and diagnostic tests.

The retailer will also defray some costs with a separate contribution of $250 or $500 for individuals, and double that range for families.

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Some workers say the price hikes for next year have pushed them to drop coverage. I really can't even afford it now so for it to go up even a dollar for me is a stretch, said Colby Harris, who said he makes $8.90 per hour and takes home less than $20,000 per year working in Walmart's produce department in Lancaster, Texas.

Harris, a 22-year-old smoker, was set to see his cost per paycheck rise to $29.60 from $25.40. He says he has decided not to sign up for coverage. Given his low income, as Harris foregoes coverage any major medical bills could potentially fall to taxpayers through the government's Medicaid program.

More than half of Wal-Mart's U.S. employees sign up for its healthcare plans, which cover 1.1 million people, including dependents. Store workers across

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