UPS cites Obamacare in cutting benefits to spouses
Analysts say such reductions are part of a larger business trend to trim employee costs overall, and health care is a big target.
Shipping giant UPS (UPS) is the latest large company to point to Obamacare as it cuts employee health benefits.
The company has told its white-collar workers that 15,000 of their spouses who are eligible for health care benefits through their own jobs will be taken off the UPS plan next year. A spokesman says that move will save UPS about $60 million annually.
According to a report from Kaiser Health News, working in collaboration with USA Today, the changes apply to nonunion U.S. workers only. And in a memo to employees obtained by KHN, UPS says rising medical costs, "combined with the costs associated with the Affordable Care Act, have made it increasingly difficult to continue providing the same level of health care benefits to our employees at an affordable cost."
On Wednesday, the University of Virginia also announced that, starting next year, employees' spouses who have access to health care coverage through their own employers will no longer be eligible for coverage under the university's plan.
"The modified plan will provide new options and reward those who participate in wellness programs," university vice president and chief human resources officer Susan Carkeek said in a press release. "But we must make adjustments or face millions of dollars in rising costs, fees and taxes that would be passed along to employees."
Industry analysts say the moves by UPS and other businesses are part of a growing trend of companies reducing their benefits overall and requiring employees to pay extra when it comes to medical coverage for their working spouses, or even denying that coverage.
"They are simply saying to the spouse outright, 'If you have coverage somewhere else, you are not eligible here,'" Edward Fensholt, a senior vice president at international insurance brokerage Lockton Companies, told KHN. "We don't see a lot of that out there, but more than we used to."
"When health care reform came on the scene a few years ago, we definitely saw an uptick in companies wanting to explore a working-spouse provision," said Steve Noury, a national sales director for HMS Employer Solutions. "We have seen (them) over the past two or three years putting those in place."
Supporters of the Affordable Care Act are scoffing at the argument that the law will have a major impact on health costs for large companies.
"The notion that those are going to be make or break when they are otherwise absorbing 7% to 10% a year (in broader health cost increases) is kind of ridiculous," Jonathan Gruber, an MIT economist who advised the Obama administration on health policy, told KHN.
In a 2009 analysis of health insurance premiums under the Affordable Care Act before it was passed, the nonpartisan Congressional Budget Office projected Obamacare's effect on premiums for large employers would be "negligible."
OBAMACARE in one sentence.....
We are going to be gifted with a health care plan that we are forced to purchase and fined if we don't, which purportedly covers at least ten million more people without adding a single new doctor but provides for 16,000 new IRS agents, written by a committee who's chairman says he doesn't understand it and passed by a congress that didn't read it but exempted themselves from it and was signed by a president who smokes with some of it being administered by a treasury chief that didn't pay his own taxes for which we are taxed for four years before any benefits take effect by a government that has already bankrupted medicare and social security and is all to be overseen by a surgeon general that is obese and financed by a country that is broke.
SO WHAT THE HFLL COULD POSSIBLY GO WRONG ?????
if you like your healthcare you can keep it.- obama
not looking good for you obama supporters.
In other news, here is a story that bears repeating over and over again, so I am.
"WASHINGTON (AP) - The average American household is earning less than when the Great Recession ended four years ago, according to a report released Wednesday.
U.S. median household income, once adjusted for inflation, has fallen 4.4 percent in that time, according to the report from Sentier Research. The report is based on an analysis of Census Bureau data.
The median, or midpoint, income in June 2013 was $52,098. That's down from $54,478 in June 2009, when the recession officially ended. And it's below the $55,480 that the median household took in when the recession began in December 2007.
The report says nearly every group is worse off than four years ago, except for those 65 to 74. Some groups have experienced larger-than-average declines, including blacks, young and upper-middle-aged people and the unemployed."
All I know is that I was promised 3 things. 1. My health insurance would cost less. 2. My health insurance will cover more. 3. My taxes won't go up. All 3 promises were broken by close of business on Jan 2, 2013.
And remember, the Supreme Court ruling was that the only way the individual mandate was constitutional is if it is a tax. Then the Federal Government has the right to demand payment and penalize those that refuse. Remember Nancy Pelosi stating arrogantley that the Supreme Court got it wrong? Remember her saying it's not a tax and it's moving forward anyway? Well then why is it being administered by the IRS?
All of you Obama drones make me laugh. They lie and lie and you just keep acting as if nothing happened. They take from you and give to the government and you pretend it never happened.
"In a democracy, people get the government they deserve," Alexis de Tocqueville. As far as I'm concerned you all got what you deserve.
The Affordable Care Act is a joke. It is only going to cause health care costs to increase, private insurance premiums to increase and employer coverage to decrease. Just one more nail being driven into America's coffin by Obama and his cronies!
"The notion that those are going to be make-or-break when they are otherwise absorbing 7% to 10% a year [in broader health-cost increases] is kind of ridiculous," Jonathan Gruber, an MIT economist who advised the Obama administration on health policy, said to KHN.
Hey Gruber, are you going to guarentee this claim?
You can't because no one knows how this will turn out. Most of America hates it.
But we do know that Gov staffers in Washington DC, and companies like Mcdonalds are exempt..
LMMFAO, more proof nobama was, is and will always be wrong. You goons made your bed, now lay in it.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
A basic income policy can actually ensure a decent standard of living for everyone.
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
More Market News
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.