Target 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.
(Read more: Aetna could be forced out of Obamacare: CEO)
The public exchanges set up under the health care law, also known as Obamacare, allow individuals to buy government-subsidized health care based on their income.
The health insurance coverage will be discontinued from April 1.