UPS cuts healthcare benefits for spouses, blames ObamaCare

By Sam Baker – 08/22/13 09:44 AM ET

hipping giant UPS says rising costs under ObamaCare are causing it to roll back parts of its employees’ healthcare plans.

UPS will no longer offer healthcare coverage to employees’ spouses who could obtain insurance through their own jobs, according to a notice first reported by Kaiser Health News.

“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 cover you, our employee,” UPS said in a memo to employees.The move could affect as many as 15,000 employees, UPS said.


Spouses of UPS employees who do not work or are not offered healthcare at their jobs could remain on the UPS healthcare plan. So can children and stepchildren.

The University of Virginia announced the same change on Wednesday, saying it would no longer extend its healthcare plan to employees’ spouses who have their own offer of employer-based coverage.

The move is likely to fuel new criticism of the healthcare law. Republican lawmakers have long warned that the requirements under ObamaCare will force employers to cut hours and healthcare benefits.

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