UPS health benefits will be cut for 15,000 of its employees' spouses. This is another sign that the outlook for U.S. businesses is dim in regards to increasing medical costs and Obamacare, Bloomberg reports Aug. 22.
Beginning Jan. 1, 2014, UPS will no longer offer health benefits to spouses who are able to get health coverage through another company. The company apparently referenced the 2010 healthcare law as justification for its decision. They added that costs would rise and provide other insurance options for spouses.
The UPS health benefits change doesn't impact spouses who don’t work or don't have employer-provided insurance. They will still be covered by the Atlanta-based company’s health plan, in addition to employees' children. The change won’t affect 250,000 Teamsters union workers or employees in other nations.
“Since the Affordable Care Act requires employers to provide affordable coverage, we believe your spouse should be covered by their own employer -- just as UPS has a responsibility to offer coverage to you, our employee,” UPS said in the memo. “Limiting plan eligibility is one way to manage ongoing health care costs.”
There's a growing concern for this type of action by companies since Obamacare was signed in. A number of workers have had their hours reduced so employers don't have to foot the bill of mandatory health insurance. Don't be surprised to see more of this in the near future with large U.S. companies.