Citing Obamacare, the United Parcel Service plans to remove 15,000 spouses from its health care plan because they are eligible for coverage elsewhere.
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,” UPS said in a memo to employees, Kaiser Health News reported.
UPS expects the move will save about $60 million a year, company spokesman Andy McGowan said.
The health law requires large employers to cover employees and dependent children, but not spouses or domestic partners, Kaiser reported.
On Tuesday, Forever 21 Inc. became the latest national company to cut employee hours to counter the impact of Obamacare, the Atlanta Business Chronicle reported.
• Jessica Chasmar can be reached at jchasmar@washingtontimes.com.
Please read our comment policy before commenting.