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UPS Cuts Health Insurance for Employees’ Spouses

AP
• August 21, 2013 2:06 pm

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The United Parcel Service (UPS) is dropping about 15,000 spouses from its health insurance plan because of Obamacare, the Atlanta Business Chronicle reported Wednesday morning:

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.

Rising medical costs, "combined with the costs associated with the Affordable Care Act, have made it increasingly difficult to continue providing the same level of health care benefits to our employees at an affordable cost," UPS said in a memo to employees.

The move only affects non-union workers, and will save $60 million per year, the Chronicle reported.

The spouses who are being dropped from the plans have access to insurance through their own employers.