August 23, 2013

UPS will not insure some spouses

Nonunion employees' working husbands and wives will lose benefits.

The Associated Press

DALLAS - United Parcel Service Inc. plans to drop health-insurance benefits for working spouses of nonunion employees if they can get coverage elsewhere. It blames the change partly on the new health-care law.

UPS estimates that 15,000 of the 33,000 spouses it covers will be dropped. The change is scheduled to take effect Jan. 1 for spouses of U.S. employees.

The worldwide parcel-delivery company says it's just going with the crowd. UPS cited a benefits consultant's survey that found more companies are planning to restrict benefits for working spouses.

UPS said it was making the change because of rising health care costs and the 2010 law championed by President Obama.

The company said that it considered letting employees pay extra to cover their working spouses but decided that would be difficult to do.

"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," the company said in a memo to employees.

 

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