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Health insurance from Wal-Mart?

By Jay MacDonald · Bankrate.com
Friday, January 25, 2013
Posted: 10 am ET

In news that lends an exciting new dimension to the phrase "clean up on aisle five," Wal-Mart, the world's largest retailer, reportedly has big plans to expand into one of America's top growth markets: health care and health insurance.

It's not such a stretch. As the Orlando Business Journal observed, Wal-Mart is already the fourth largest pharmacy in the nation, routinely administers on-site vaccinations and even sells health insurance through its big-box Sam's Club chain. In fact, health and wellness products and services accounted for 11 percent of Wal-Mart's sales and 5 percent of Sam's Club business in 2011, according to the company's annual report.

But now, apparently inspired by the state health exchanges scheduled to open in 2014 under health care reform, Wal-Mart has set its sights on establishing its own branded health insurance exchange aimed at small businesses looking for a big hand with their health care plans.

Private health exchanges are popping up with some frequency these days. Recently, the consulting firm Aon Hewitt announced plans to set up a health insurance exchange for employees at Sears and at Darden Restaurants, which owns Olive Garden and Red Lobster. A competing consulting firm, Mercer, also is building a health insurance exchange for employers.

One advantage a Wal-Mart health exchange would have over the new federal-state exchanges is traffic -- lots and lots of traffic. But the government health exchanges will offer something that Walmart cannot: a small-business tax credit to qualifying employers.

Nor does the retail giant plan to ignore the profits possible from in-store clinics. While Wal-Mart lags well behind corner-pharmacy brands CVS and Walgreens with just 150 clinics nationally, Kaiser Health News reported that the company planned a huge expansion of its clinics more than a year ago. The Orlando Business Journal reports that Wal-Mart plans to offer full primary care services at its clinics in the next five to seven years. Wal-Mart has denied both reports.

Then again, the retail giant plays things pretty close to the vest these days after its ambitious plans to expand its MoneyCenters into a full-blown banking enterprise ran afoul of federal regulators a few years back.

One thing is certain: With U.S. health care spending at a staggering $2.7 trillion annually, or nearly 18 percent of the U.S. economy, Wal-Mart won't be the last major company to explore ways to affix its brand to American health care.

Follow me on Twitter: @omnisaurus

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67 Comments
Health Stores
February 22, 2013 at 2:29 am

I have read carefully above information as Well that’s really great and I appreciate it.I feel strongly about it and love learning more on this topic.Nowadays very need health insurance for secure life.thanks for post this blog.

Ryan Sullivan
February 21, 2013 at 8:11 am

I wanna double cheese burger.

joanne
February 01, 2013 at 9:33 pm

it is nice , but it is sad that a department store has to over insurance so most people can afford it,, that is saying alot for this great country of ours let freedom ring!!!!!!!!!!!!!!!!!!

Shirley
January 30, 2013 at 11:48 pm

With all the negative comments about Walmart, I believe you all watched the same documentary. What Walmart does in regards to part-time employees is a time honored tradition of all the retail stores. This started in the 70's. I have worked retail in many places including K-mart and they all do the same thing. They just can't compete with the Walmart philosopy. I wouldn't even enter a K-mart store unless I had to. They think they are doing you a favor. Target stores also hire part-time for the same reason. So what's the gripe with Walmart? Oh, btw, K-mart was the first big box that put the mom and pops out of business.
GO WALMART! At least you value people and that would be a perfect reason to come for our health care.

Curtis
January 29, 2013 at 11:24 pm

I would buy Wal Mart insurance if the cost was right. I would also like to see walmart offer health ins. to part time people and retirees who have worked for them for 20 yrs or more. The other large companies do this and I don't know why walmart couldn't offer it. The reason most older folks don't retire at age 62 is their insurance. After working more than 3/4 of their life, it would be nice to retire with insurance thats affordable.