UPS Drops Health Insurance for Employee Spouses, Blames Obamacare

Photo Credit: zyphbear

Photo Credit: zyphbear

United Parcel Service, the nation’s largest package delivery company, plans to drop health insurance coverage for thousands of employees’ spouses in a cost-cutting move it blames partially on President Obama’s health care law.

Of 33,000 spouses on UPS’s plan, about 15,000 are eligible for health coverage through their own employers and won’t be covered by the company beginning next year, according to a memo to employees published by Kaiser Health News.

Since the Affordable Care Act requires employers to provide affordable coverage, the shipping giant says those 15,000 spouses should be covered by their own employer “just as UPS has a responsibility to offer coverage to you, our employee,” the memo said. “Limiting plan eligibility is one way to manage ongoing health care costs.”

UPS said the coverage shift is “consistent with the way many large employers are responding to the costs associated with the health-care reform legislation.”

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