Obamacare jolts to employer-based insurance

Health Insurance » Obamacare » Obamacare Jolts To Employer-Based Insurance

Surcharges for dependents
Surcharges for dependents © wavebreakmedia/

The drive to control health care costs is causing some employers to rethink their coverage of employees' spouses and kids.

"We've seen employers back off from contributing to family coverage as a way to manage costs," says Chollet.

UPS announced to its workers that starting in 2014, it would no longer provide health insurance to employees' spouses if they are eligible for coverage at their own workplace. The delivery giant cited the Affordable Care Act as a reason for its move.

"The change is consistent with the way many large employers are responding to the costs associated with the health care reform legislation," UPS said in a memo to workers.

While other companies aren't yet dropping spousal coverage, nearly 7 out of 10 have implemented or plan to implement surcharges for adult dependents who have access to coverage elsewhere, according to an Aon Hewitt analysis.


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