On the statement the package delivery company said it would no longer offer coverage to spouses who could get insurance through their own employers. UPS cited 2010's Affordable Care act, commonly referred to as Obamacare, as the reason for the change.
"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,” the company said in the memo. “Limiting plan eligibility is one way to manage ongoing health care costs.”
According to Bloomberg, UPS's decision is a sign that corporate America is changing the way it looks at benefits that once were believed to be a given by employers.
“The feeling is drastic times call for drastic measures,” said Rich Fuerstenberg, a partner at New York-based benefits consultant Mercer Inc. “What employers are adopting today are strategies that were considered crazy or out of the mainstream just a few years ago.”
UPS also cited the "rising cost of health care in general" as a reason for the change. The changes, which will only affect U.S. employees, will go into effect beginning on January 1, 2014.