Blaming Obamacare, UPS Drops Health Coverage For 15,000 Employee Spouses

August 27, 2013  |  

This certainly isn’t good publicity for Obamacare. UPS has decided to cease coverage of those employee’s spouses who can get coverage from their own employer, according to a memo obtained by Kaiser Health News, This, says UPS, is a result of increased costs and provisions of the Affordable Care Act (ACA),

UPS made the cut after stating health care costs increased $49 million in the first half of fiscal 2013, which it says is largely due to the ACA, according to the Wall Street Journal.

“This move will likely be particularly unpopular as it can be difficult and costly for married couples to have separate insurance. Many other employers allow spousal coverage for a fee, which UPS considered, but chose not to allow,” reports Business Insider.

This will not affect all UPS employees; 250,000 of the company’s 322,000 workers are unionized, and will still be able to insure their spouses by union contracts. About 15,000 spouses will be affected, meaning a savings of around $60 million, according to a company spokesman.

Other major companies are making the same decision. “When UPS looked at other companies’ health coverage plans while trying to make its decision, it found that 35% of them plan a similar move next year,” reports Business Insider.

President Obama and  Health and Human Services Secretary Kathleen Sebelius held a video conference call last week with the directors of the state healthcare marketplaces, which will go into effect October 1 in order to discuss the progress that’s being made and thank the organizers for the work their doing with limited time, and, in some cases, resources and support. The White House also used a statement to reiterate the benefits of the Affordable Care Act.

“Plans offered in the marketplace will include new consumer protections under the Affordable Care Act such as:

• No discrimination based on pre-existing conditions or gender;

• No annual dollar limit on coverage;

• No lifetime limit on coverage;

• A cap on out-of-pocket costs; and

• A requirement that insurance plans cover essential services like hospitalizations, doctors’ visits, and prescription drugs.”

Do you know someone who will be taking advantage of the new healthcare marketplace?

Trending on MadameNoire

Comment Disclaimer: Comments that contain profane or derogatory language, video links or exceed 200 words will require approval by a moderator before appearing in the comment section. XOXO-MN