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Many of Wal-Mart's part-time workers will no longer be offered health benefits.

NEW YORK (CNNMoney)

The cut applies to part-timers who work fewer than 30 hours a week, Wal-Mart -- about 2% of the company's U.S. workforce.

More of Wal-Mart's employees signed up for health benefits this year than the company expected, which boosted the company's costs.

One reason for the increase in sign-ups could be Obamacare, which requires most everyone to have health coverage, though Wal-Mart did not make that connection.

Employees who lost the Wal-Mart coverage option would now be eligible for government subsidies on Obamacare exchanges. That could work out to a better deal, especially for lower-paid employees.

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Those who remain eligible for company coverage will see premiums rise. The cheapestand most popularWal-Mart plan is increasing $3.50 to $21.90 per paycheck.

"This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment," wrote Wal-Mart executive Sally Welborn in a blog post.

In August, the company said the increased enrollment led to a $500 million jump in health care costs compared to last year.

Wal-Mart(WMT) is not the first company to trim health benefits in the wake of Obamacare's roll out. Rival Target(TGT) announced in January that it was eliminating benefits for all part-time workers. It encouraged those employees to enroll in Obamacare and gave a $500 cash payment to each of them.

Home Depot(HD) and Trader Joe's announced last year that they would stop offering coverage to part-timers.

A Wal-Mart spokeswoman said the company will not limit the hours employees work as a result of the benefits change.

First Published: October 7, 2014: 3:01 PM ET...