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.”

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Comments (8)
  • Ajayyy
    , contributor
    Comments (325) | Send Message
    Leading everyone in a free market, UPS does its part -- one uninsured spouse at a time.
    21 Aug 2013, 07:18 PM Reply Like
  • Topcat
    , contributor
    Comments (579) | Send Message
    They are not cutting off insurance for spouses; very misleading headline (typical theses days); only for those spouses who are covered with their own employer's plan. Heck, my employer did this 15 years ago, after getting tired of coordinating benefits between the two (some employees were submitting bills to BOTH insurance companies and thus getting reimbursed > 100%).
    21 Aug 2013, 07:49 PM Reply Like
  • Jake2992
    , contributor
    Comments (1105) | Send Message
    Another slanted anti-Obama article, it's for spouses who already have insurance. UPS is cutting benefits because it works for their bottom line, nothing else. They want more money and don't want to look greedy so the are blaming the Affordable Care Act. In reality, the ACA is bringing down health care costs even before it has been fully implemented.
    21 Aug 2013, 08:52 PM Reply Like
  • TippingPoint
    , contributor
    Comments (165) | Send Message
    Total BS Jake. Get a clue.
    21 Aug 2013, 10:52 PM Reply Like
  • schnickelfritz
    , contributor
    Comments (44) | Send Message
    Two of the three previous posters are clueless.
    Why should any employer pay for benefits for a working spouse who is already covered by the spouse's own employer?
    21 Aug 2013, 09:13 PM Reply Like
  • Hendershott
    , contributor
    Comments (1754) | Send Message
    Employer sponsored health care isn't free to the employee. Why are these people paying for two healthcare plans in the first place? It's not like one company writes you a check because the other insurer paid the bill.
    21 Aug 2013, 09:41 PM Reply Like
  • gonji
    , contributor
    Comments (59) | Send Message
    It's only a matter of time before the employees and their families are booted onto the healthcare exchanges. Anyone who believes differently is kidding themselves.
    21 Aug 2013, 10:30 PM Reply Like
  • KJP712
    , contributor
    Comments (469) | Send Message
    They need more money to replace all the boxes they broke this year.
    21 Aug 2013, 11:54 PM Reply Like
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