The University of Virginia announced today that it will be dropping health coverage for some employees’ spouses, citing the rising costs added by Obamacare.
According to a university press release, the Affordable Care Act is projected to add $7.3 million to the cost of the university health plan in 2014 alone.
The university added that they could also face millions more in federal taxes once the university passes certain thresholds set by the act.
The University of Virginia explains:
Provisions of the federal Affordable Care Act are projected to add $7.3 million to the cost of the university health plan in 2014 alone. Federal health care reform will create new costs related to the "individual mandate" that requires all Americans to have health care coverage (or pay a penalty).
Additionally, the university reports it could face millions more in taxes on some insurance plans:
"Ironically, by providing generous benefits, the university becomes exposed to a federal excise tax known as the ‘Cadillac tax,’" Carkeek said.
Effective in 2018, the 40 percent tax would apply to the cost of an individual plan with average premiums per employee topping $10,200, or $27,500 for a family plan.
If the university made no changes to address rising costs or the impact of the Affordable Care Act, employee premiums would have risen a projected 12 percent to 13 percent this year.
It was announced earlier today that the United Parcel Service (UPS) would be dropping 15,000 spouses from its health insurance plan because of Obamacare.