The Campaign Spot

Great: UPS Responds to Obamacare by Dropping Spousal Coverage

In light of yesterday’s item about Obamacare’s regulations prompting companies dropping spousal coverage from health-insurance plans, and some companies passing the entire cost of children’s health coverage on to employees . . . Jeryl Bier notices another big example:

United Parcel Service Inc. plans to remove thousands of spouses from its medical plan because they are eligible for coverage elsewhere. The Atlanta-based logistics company points to the Affordable Care Act, or Obamacare, as a big reason for the decision, reports Kaiser Health News.

The decision comes as many analysts are downplaying the Affordable Care Act’s effect on companies such as UPS, noting that the move reflects a long-term trend of shrinking corporate medical benefits, Kaiser Health News reports. But UPS repeatedly cites Obamacare to explain the decision, adding fuel to the debate over whether it erodes traditional employer coverage, Kaiser says.

USA Today reports employees can expect more of this sort of sudden loss of spousal coverage under their health insurance:

This year 4 percent of large employers surveyed by consultants Towers Watson excluded spouses if they had similar coverage where they work. Another 8 percent planned such a change for 2014, according to the survey.


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