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Tuesday, January 21, 2014

Target to stop healthcare coverage for part-time workers, (NYSE: TGT)

Target Corp said it will stop offering health coverage to part-time workers, citing new public insurance exchanges floated by the U.S. government. Less than 10 percent of the company's 361,000 employees currently participate in the insurance plan that is being discontinued, Target said in a company blog post on Tuesday."By offering them insurance, we could actually disqualify many of them from being eligible for newly available subsidies that could reduce their overall health insurance expense," Target said.The public exchanges set up under the health care law, also known as Obamacare, allow individuals to purchase government-subsidized healthcare based on their income.The health insurance coverage will be discontinued from April 1.

Target Corporation sells a range of assortment of general merchandise and food in its stores. Shares of TGT fell by 1.73% or $-1.04/share to $59.20. In the past year, the shares have traded as low as $58.80 and as high as $73.50. On average, 5799990 shares of TGT exchange hands on a given day and today's volume is recorded at 10609018.