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Employers Dropping Spousal Benefits Due to Obamacare

Employers Dropping Spousal Benefits Due to Obamacare

Shipping giant UPS blames Obamacare for having to drop health benefits for employees' spouses if they can get coverage elsewhere, and more companies are expected to follow.

The move is expected to impact 15,000 employees' spouses.

Corbin Cooke at Houston-based Core Benefits says he is seeing more companies having to shed costs due to mandates under the new health care law.

“Employers are being forced to offer coverage for their employees at a higher cost, and people are frustrated and doing what they can to steer away from it,” Cooke tells KTRH News.

Congressman Henry Cuellar argues spousal coverage was never required by Obamacare, so companies like UPS are just being greedy.

“This is a company that had a revenue last year of $54.1 billion,” the Laredo Democrat says.  “Direct profits were $871 million last year.”

Corbin urges employees to be prepared heading into 2014.

“I recommend that people talk with their Human Resources department and find out if that requirement is enforced or something that potentially will be enforced, so that you're equipped to consider those changes when your open enrollment comes around,” he says.

 

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