The change means those workers will either seek coverage from new public insurance marketplaces that open Oct. 1 or face a penalty, The Atlanta Journal-Constitution reported.
The retailer said its decision is in response to the new law on health care coverage, the Affordable Care Act.
Home Depot joins a growing list of corporations that have cut back on or shifted their employee health insurance offerings. Some have cited potential savings and others are pointing to better employee benefits as reasons for their decision.
The change affects about 20,000 part-time Home Depot workers nationwide who take the insurance coverage.
The company would not disclose how much it will save by dropping the insurance.
"We do not believe the impact of ACA will be material to the company's financials," company spokesman Stephen Holmes said of the Affordable Care Act.
Home Depot will continue to offer its part-time workers various benefits, including dental and vision coverage, life insurance, short-term disability insurance, a hospital indemnity plan and a critical illness protection plan, the company said.
Information from: The Atlanta Journal-Constitution, http://www.ajc.com
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