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UPS drops coverage for employee spouses - Is this good or bad for Obamacare?

edited August 2013 in Obamacare Debates and Opinions Posts: 47
Kaiser Health News/USA Today reported that United Parcel Service (UPS) is dropping coverage for its employees' spouses who are eligible for health plans through their own employers.  Apparently the company has sent a memo to employees obtained by Kaiser Health News/USA Today. The largest package delivery company became one of the biggest companies to drop spousal coverage. 

UPS said the decision was made primarily because of "costs associated with" the healthcare reform law. "Limiting plan eligibility is one way to manage ongoing healthcare costs, now and into the future, so that we can continue to provide affordable coverage for our employees," UPS said in the memo. "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 estimates the policy change will affect about 15,000 spouses, Kaiser Health News/USA Today reported.

Comments

  • Posts: 6
    Are they only dropping this for spouses that have access to healthcare from their employer or all spouses? Are they dropping it for children?

    There is a lot of discussion about employers dropping other people. I think that the impact will be that potential employees might look towards employers with better benefits, and avoid companies with less benefits. 
  • Wow, this is unbelievable. I think that if you are an employee that has a spouse who does not work this would put you and your spouse in a bind. I do not think I would ever apply to work at UPS. I am not currently looking for a job, but if I do I will refrain from UPS.
  • Posts: 24
    It sounds to me like they're only dropping working spouses who will be offered insurance through their work. If that's the case, I don't know how it'll affect Obamacare, but it'll save a lot of money for UPS, rather than letting these other companies save money at their expense. I guess it could be a little awkward if the married couple have extremely different plans, though.
  • It definitely will save money for UPS. If the spouse works, as well, then the spouse also has the option to get insurance through their work. If they don't work, there's quite the possibility that they are eligible for Medicaid. There are multiple options for this situation. Many companies don't have other policies like that, this isn't new. 
  • This is maybe good for Obamacare, but really crappy for families. This too happened at my husband's work. I am a stay at home mom, so we got lucky and I did not have to apply for my own insurance. I feel sorry for the UPS families. This could really hurt their pockets. All so Obamacare can make their pockets fat.
  • Posts: 70
    Well I do not think that I look at something at say that someone being dropped is good for anything.  That said, though, what @thash1979 said above sounds about right.  Terrible for the families, but if you want to see the ACA take on new customers, then I guess it is good.  The whole issue is becoming nauseating, to be quite honest, but that is what you are going to get when you try something this large.
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