The United Parcel Service is ending health benefits for 15,000 of its workers' spouses according to Bloomberg.net
"The feeling is drastic times call for drastic measures," Rich Fuerstenberg, a partner at New York-based benefits consultant Mercer Inc. told Bloomberg. "What employers are adopting today are strategies that were considered crazy or out of the mainstream just a few years ago."
According to Bloomberg, the move might be an indication of future changes when it comes to people paying their medical bills.
"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 said in the memo Bloomberg eported. "Limiting plan eligibility is one way to manage ongoing health care costs."
According to Bloomberg, health coverage will not be available to the wives of UPS employers who can obtain it through another company starting Jan. 1. The company used the 2010 health care law which grants coverage to everyone expressing it would increase costs, and give spouses other options to obtain coverage. U.S. Health and Human Services Department spokesman did not comment about UPS's move, but rather elaborated on changes in health care.
"Since the Affordable Care Act became law, health care costs have been slowing and premiums are increasing by the lowest rates in years," Peters told Bloomberg in an e-mail. "The law is changing the way we deliver care to keep costs down and produce better outcomes for patients."
Changes will only affect employees in the United States according to a memo from Kaiser Health News Bloomberg reported. Spouses who don't work or do not have health insurance provided by their employer will still receive health care benefits from the company. Children will also be included.
According to Bloomberg, Coverage for the company's 250,000 Teamsters union workers or employees in other countries will stay the same.
