(NEW YORK) — United Parcel Service is planning to stop providing health care coverage for some of the spouses of its employees partly because of rising costs under Obamacare.
In a memo to employees, the world’s largest package delivery company explained its decision by saying, “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.”
“Limiting plan eligibility is one way to manage ongoing health care costs, now and into the future, so that we can continue to provide affordable coverage for our employees,” the memo continued.
The new policy will go into effect on Jan. 1, 2014 and will only affect working spouses with medical benefits available from their own employer, says UPS.
The company estimates that 33,000 spouses are currently covered under its insurance plan, and that about 15,000 of them would have access to health care coverage through their own employers.
“That works out to be about 20% of the 77,000 employees enrolled in the Flx Plan who potentially will be impacted,” the memo notes.
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Jacqueline Howard, CNN
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Jethro Mullen Ivana Kottasova and Patrick Gillespie, CNN