UPS is one firm which does not see Obamacare as bringing the United States anywhere near to having a utopian form of health care coverage. Money News reported on Aug. 21, 2013, UPS Cutting Back Spousal Health Coverage Over Obamacare. This fall UPS along with a growing list of other big companies will end health insurance coverage of employees' spouses if they can get coverage elsewhere. This is considered largely due to Obamacare.
UPS said in a memo to employees that increased medical costs, "combined with the costs associated with the Affordable Care Act (ACA), have made it increasingly difficult to continue providing the same level of healthcare benefits to our employees at an affordable cost." Although Obamacare requires large employers to cover employees and their dependent children, it doesn't require them to cover spouses or domestic partners.
This action by UPS is going to affect an estimated 15,000 working spouses at that company. UPS has estimated this move will save the firm about $60 million annually. UPS attributes at least part of this decision to the law's ban on annual and lifetime coverage limits and its requirement to cover dependent children up to age 26.
USA Today has reported United Parcel Service is planning to remove thousands of spouses from its medical plan since they are eligible for coverage elsewhere. UPS repeatedly cites Obamacare to explain the decision. UPS has become one of the highest-profile employers as of this time to bar working spouses from the company plan. This move by UPS raises concerns about what the snowballing effects of Obamacare ultimately will be on other large firms and their workers and families across the United States.