UPS to exclude 15,000 spouses from employee health coverage
But with employers looking to cut costs as key provisions of the Affordable Care Act begin to take hold, the benefit is heading for the endangered list.
UPS’ move will save money, although the company wouldn’t say how much.
UPS and Xerox are simply leading the way, according to a survey released Wednesday. The consulting firm Towers Watson said that 25 percent of employers surveyed have measures in place to prevent or discourage spouse coverage. That number is projected to increase to 32 percent next year, when the federal health care reform law takes effect. Another 23 percent said they are considering such action in 2015 or 2016. If they all did, more than half the companies will have moved to reduce or eliminate spouse coverage.
“What UPS is doing is definitely part of a growing trend while, to be sure, their approach is by no means widespread at this point,” said David Bottoms, senior vice president of benefits for The Bottoms Group in Marietta, Ga.
Subscribe for FREE!
Union Leader Business Newsletter
NH delays enforcing liquor warehouse pact
Planned Parenthood funds S&M Web video
John DiStaso's Granite Status: Gatsas incensed by unauthorized use of his phone number for 'robocalls'
Ted Siefer's City Hall: It was all about chickens, alleged threats and nocturnal wanderings
Blue shame: Obamacare's big change
Charles Krauthammer: The wages of weakness