UPS Dropping Coverage for 15,000 Spouses over Obamacare
The United Parcel Services (UPS) announced it will drop 15,000 workers' spouses from medical insurance plans citing Obamacare as a chief reason for the decision.
The Atlanta Business Chronicle reports a UPS memo sent to employees says increased 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."
Kaiser Health News says two months ago UPS informed white-collar workers that 15,000 spouses would be cut from health coverage because they were eligible to receive insurance from their own employers.
UPS says the decision will save the company an estimated $60 million annually.
A recent survey of 420 companies found that 40% plan to change their insurance plans in 2014 when Obamacare begins.