NEW YORK (AP) — Target Corp. says it will no longer offer health care coverage for its part-time workers.
The discounter is citing new options now available through health care exchanges under the Affordable Care Act.
Target, based in Minneapolis, said less than 10 percent of its part-time employees take advantage of the health plan. It said it will stop covering the part-time workers beginning April 1.
Other large employers, such as UPS, are scaling back health coverage by dropping spouses from their employee plans if they are able to get insurance through another employer.
“Health care reform is transforming the benefits landscape and affecting how all employers, including Target, administer health benefits coverage,” Jodee Kozlack, Target’s executive vice president of human resources, said in a corporate blog post.
Target said in the post that by offering its part-time workers insurance, it could disqualify many of them from new subsidies that could reduce their overall health insurance expenses.
Target said part-time workers who are losing coverage will be given $500.
Separately, Target said Wednesday that it was laying off 475 employees across the company’s operations. It also said that over the past six months it has closed about 700 open positions across the entire chain.
The move comes almost two weeks after Target lowered its fourth-quarter profit outlook as it grapples with the fallout of a massive security breach.