UPS to Drop 15,000 Spouses' Health Coverage Due to Obamacare
Wed, 08/21/2013 - 11:30am
Posted by mainemom
This deserves its own thread because if this makes economic sense to UPS, then it's going to make economic sense to lots of other employers; maybe yours? Maybe my spouse's?
United Parcel Service Inc. plans to remove thousands of spouses from its medical plan because they are eligible for coverage elsewhere. The Atlanta-based logistics company points to the Affordable Care Act, or Obamacare, as a big reason for the decision, reports Kaiser Health News.
Note: this applies to non-union UPS workers. Unions will probably have to deal with this in their next round of negotiations, though.
So, as predicted before the law went into effect, it makes sense for a company to use the exchanges as an excuse to drop coverage. And take it a step further: the next thing will be companies dropping coverage altogether and instead paying the fines, at least with regard to employees whose income puts them in the range where they'd be eligible for a federal subsidy.
But not to worry, says the Obama Department of Non-reality:
"The health care law will make health insurance more affordable, strengthen small businesses and make it easier for employers to provide coverage to their workers," said Joanne Peters, spokeswoman for the U.S. Department of Health and Human Services.