You'll never guess Wal-Mart's latest ventures: banking and health care!!!
Back in July 2005, Wal-mart petitioned the Federal Deposit Insurance Corp. for permission to open an industrial bank and thereby keep in-house the fees that it pays to other banks to process credit caard and debit card payments. If it's application is approved, the company can, theoretically at least, expand into retail banking after three years. That possibility has the banking community feeling mighty nervous.
Health insurers should also be worried. Wal-Mart has begun offering health insurance to bussinesses therough Wal-Marts warehouse club, Sam's, in conjunction with private company ExtendBenefits. BUsinesses will be able to offer employee's access to ExtendChoice, through which they can use tax-free dollars to purchase HMO, PPO and HAS (health savings account) plans.
The best part of the program, once purchased, the plan becomes the employee's property and is portable from employer to employer in the event of a job change or layoff. It sounds a lot like some of the "national health care" proposals being debated in COngress in recent years, but with one twist: It's a private company offering it, and a private company that will reap anyprofits to be gained from the savings.
And one more twist: It gives small businesses one more reason to become customers of Sam's Club rather than rival Costco.
Source: The Motley Fool
___________________
Commentary:
When will the madness stop???
Back in July 2005, Wal-mart petitioned the Federal Deposit Insurance Corp. for permission to open an industrial bank and thereby keep in-house the fees that it pays to other banks to process credit caard and debit card payments. If it's application is approved, the company can, theoretically at least, expand into retail banking after three years. That possibility has the banking community feeling mighty nervous.
Health insurers should also be worried. Wal-Mart has begun offering health insurance to bussinesses therough Wal-Marts warehouse club, Sam's, in conjunction with private company ExtendBenefits. BUsinesses will be able to offer employee's access to ExtendChoice, through which they can use tax-free dollars to purchase HMO, PPO and HAS (health savings account) plans.
The best part of the program, once purchased, the plan becomes the employee's property and is portable from employer to employer in the event of a job change or layoff. It sounds a lot like some of the "national health care" proposals being debated in COngress in recent years, but with one twist: It's a private company offering it, and a private company that will reap anyprofits to be gained from the savings.
And one more twist: It gives small businesses one more reason to become customers of Sam's Club rather than rival Costco.
Source: The Motley Fool
___________________
Commentary:
When will the madness stop???
