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