Wal-Mart expands health plans for U.S. workers

NEW YORK (Reuters) - Wal-Mart Stores Inc said on Tuesday it is expanding the number of health care plans it will offer its 1.3 million U.S. employees, including adding health care credits and $4 monthly prescriptions for any of 2,400 generic drugs.

The new plans will go into effect in January.

Wal-Mart, which has faced criticism from labor groups and politicians for its pay and health care practices, said its employees will have more than 50 ways to customize their health care coverage options for next year, up from nine choices this year.

For instance, employees who enroll in its "Value Plan" can choose to receive an annual health care credit of either $100, $250 or $500 for each covered family member. The credits can be used to cover medical expenses and will be paid by the plan, not the employee.

Wal-Mart employees can also choose different premiums, including a premium of $8 a month that includes a $2,000 deductible, or a premium of $79 a month that includes a $500 deductible.

Wal-Mart Watch, a vocal critic of Wal-Mart that has pushed the retailer to change its health care benefits, said the coverage changes "show signs of improvements and demonstrate the company is listening to us and other critics," but it said some of the plans are still unaffordable to low-wage workers.

Health care is expected to be a central theme in the upcoming 2008 U.S. presidential election as costs rise and millions of Americans lack coverage.

On Monday, Democratic presidential contender Hillary Clinton became the last of the top Democratic candidates to roll out all of her proposals for an overhaul of the health care system and coverage for uninsured Americans. For details, see

Wal-Mart has also joined a coalition of labor groups and businesses that are pushing for "quality, affordable" health insurance coverage for all Americans by 2012, although the group has not yet unveiled any specific plans.

Wal-Mart shares rose 25 cents to $43.57 in afternoon trading on the New York Stock Exchange.

(Additional reporting by Justin Grant)