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Wednesday, Aug 21
UPS to end health benefits for some employee spouses, blames Obamacare
- UPS plans to cut off health benefits to ~15K working spouses of employees starting in 2014, a move it says is prompted in part by higher costs related to Obamacare.
- According to an internal memo, UPS expects an 11.25% increase in health coverage costs in 2014 over 2013, vs. its normal 6%-7% increase in annual costs.
- The move could be a harbinger of things to come, says a director of the Employee Benefit Research Institute, because “once a major employer like UPS takes a step, all of the others will at least start looking at it.”