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Current Events & Hot Topics Current Events & Hot Topics

UPS to drop 15,000 spouses from insurance, cites Obamacare

Posted by on Aug. 21, 2013 at 10:02 AM
  • 18 Replies


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.

The decision comes as many analysts are downplaying the Affordable Care Act's effect on companies such as UPS, noting that the move reflects a long-term trend of shrinking corporate medical benefits, Kaiser Health News reports. But UPS repeatedly cites Obamacare to explain the decision, adding fuel to the debate over whether it erodes traditional employer coverage, Kaiser says.

Rising medical costs, “combined with the costs associated with the Affordable Care Act, have made it increasingly difficult to continue providing the same level of health care benefits to our employees at an affordable cost,” UPS said in a memo to employees.

According to Kaiser, UPS told white-collar workers two months ago that 15,000 working spouses eligible for coverage by their own employers would be excluded from the UPS plan in 2014.

UPS expects the move, which applies to non-union U.S. workers only, to save about $60 million a year, company spokesman Andy McGowan said.

The health law requires large employers to cover employees and dependent children, but not spouses or domestic partners, Kaiser adds.

Kaiser said the Obama administration would not respond directly to UPS' statements, but said that employer coverage increased when Massachusetts implemented its own version of the health overhaul.

"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.

source

by on Aug. 21, 2013 at 10:02 AM
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Replies (1-10):
stormcris
by Christy on Aug. 21, 2013 at 10:07 AM
1 mom liked this

What is the first thing that happens when something is required? The price of it goes up. However, this is the same thing the federal government set as policy when you cannot get on the insurance exchange if you can get insurance elsewhere.

LvngMmyCampbell
by on Aug. 21, 2013 at 5:27 PM
1 mom liked this

I read a while back that companies also plan on moving FT employees to PT positions so that they don't have to offer medical to them. 

PeeperSqueak5
by on Aug. 21, 2013 at 6:11 PM

BUMP!

MelanieJK
by Silver Member on Aug. 21, 2013 at 6:17 PM
1 mom liked this

"If you like your coverage now this won't impact you"    lol

Rubberbiscuit
by Bronze Member on Aug. 21, 2013 at 6:42 PM
1 mom liked this

I think it's a crappy thing to do, but this article doesn't say they are dropping all spouses from health coverage, just working spouses who are elegible for coverage through their employers.  It's still a really shitty thing to do, since it's something they've already been providing to their workers. It seems like Obamacare is just an excuse they are using to do something they might have done anyways. 


Quoting candlegal:

 

According to Kaiser, UPS told white-collar workers two months ago that 15,000 working spouses eligible for coverage by their own employers would be excluded from the UPS plan in 2014.

UPS expects the move, which applies to non-union U.S. workers only, to save about $60 million a year, company spokesman Andy McGowan said.


 

jackiebuttons
by Member on Aug. 21, 2013 at 11:42 PM

I work for a tiny company, basically 4 people in one shop, and about 8 in the other shop a few towns away. My boss, is looking forward to Obamacare. He wants us to have coverage, wants us to be able to take care of ourselves without it hurting us financially. He wants good things to happen for us. And finds that the companies who put people on part time, or lay off, or go through temp agencies because they dont agree with the new insurance, are incredibly selfish and hurting families.

 

-Celestial-
by Pepperlynn on Aug. 22, 2013 at 1:05 AM
1 mom liked this
because they are eligible for coverage elsewhere. 
jessilin0113
by Platinum Member on Aug. 22, 2013 at 1:08 AM
1 mom liked this

I like to point out that none of this is actually mandated by "Obamacare".  It's the employers CHOOSING to do this.  

Valentina327
by on Aug. 22, 2013 at 2:50 AM
1 mom liked this
Choosing to do it because of extra costs being forced down their throats by our lovely communistic government. Did all the liberals REALLY think this free health care would actually be free?

Well all the left wing whined about it long enuf...enjoy everyone!
shanesmom24
by on Aug. 22, 2013 at 3:17 AM

yup so now those working spouses can fork over an extra couple hundred every month.  

Quoting Rubberbiscuit:

I think it's a crappy thing to do, but this article doesn't say they are dropping all spouses from health coverage, just working spouses who are elegible for coverage through their employers.  It's still a really shitty thing to do, since it's something they've already been providing to their workers. It seems like Obamacare is just an excuse they are using to do something they might have done anyways. 


Quoting candlegal:


According to Kaiser, UPS told white-collar workers two months ago that 15,000 working spouses eligible for coverage by their own employers would be excluded from the UPS plan in 2014.

UPS expects the move, which applies to non-union U.S. workers only, to save about $60 million a year, company spokesman Andy McGowan said.




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