Spousal Health Care Coverage

Spousal health care coverage

Corporations often employ a number of different strategies to generate value for both customers and shareholders. In anticipation of a coming change in the health care industry, one major U.S. shipper recently modified its health care strategy to help trim costs.

Recently, UPS revealed that it will be eliminating health care coverage for some spouses of its employees. Spouses of UPS employees eligible for health care coverage under their own employers plan will not be eligible for UPS Flexible Benefits Plan medical coverage. This change takes effect January 1, 2014. Coverage will still be provided to spouses who either don’t work or work for an employer that doesn’t offer health care coverage. Employees with spouses that fall under these coverage exceptions must call the Benefits Services Center to enroll in the Flex Plan. Spouses with available health care coverage from their own employer are still eligible to enroll in UPS Flex Plan benefits for dental, vision, and other supplementary benefits.

During this same announcement, UPS also stated that it will be increasing medical premiums by $150 per month, beginning January 1, 2014, for employees who smoke or covered spouses that smoke. The move is meant to discourage the use of tobacco products by employees and their families. To help employees quit smoking and avoid this additional cost, UPS is offering free access to the Quit for Life program created by the American Cancer Society and Alere.

All employees that fail to actively enroll in the Flex Plan for 2014 will receive default coverage. Spouses will not be included in the default coverage plan and the tobacco premium will automatically be included. If an employee chose no coverage for 2013, they will receive no coverage in 2014.

The details of UPS health care program modifications can be found here.

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  1. Anonymous

     /  August 24, 2013

    it’s about time…

  2. Anonymous

     /  August 24, 2013

    To Anonymous…uhhh, what??!

    I can understand a company trying to reduce costs, especially the high costs of providing health insurance to its employees, but this is just a preview of things to come if this atrocious healthcare law is not repealed. All costs will be passed on to the individuals to the point that no one will be able to afford insurance at all. These affected UPS employees will be paying more right off the bat, as two single policies cost much more than a one-and-spouse or family policy. If people can’t see that the true goal of Obamacare is to drive everyone onto the Socialized medicine bandwagon, they’re blind.

  3. Anonymous

     /  August 25, 2013

    I said ‘It’s about time’ to ellcit a reply 😉
    Terrible piece of legislation – watch out people … little by little … they call it ‘Obamacare Bumps’ – it was on Fox News Sunday 8/25/13

  4. Why would you publish an article for spousal Health Care for UPS in the USPS Blog

  5. Jonn

     /  August 29, 2013

    Anything that can possibly impact the PO is something I’d be interested in. USPS is talking about healthcare changes too, and I hope it doesn’t end up doing something like this.

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