Wednesday, August 21, 2013

The End of Family Medical Plans?

From USA Today;
Partly blaming the health law, United Parcel Service is set to remove thousands of spouses from its medical plan because they are eligible for coverage elsewhere.
Many analysts downplay the Affordable Care Act's effect on companies such as UPS, noting that the move is part of a long-term trend of shrinking corporate medical benefits. But the shipping giant repeatedly cites the act to explain the decision, adding fuel to the debate over whether it erodes traditional employer coverage.
The health law requires large employers to cover employees and dependent children but not spouses or domestic partners. So now mom gets her own healthcare plan and may have to find a new doctor and domestic partners are s.o.l. When Obamacare was being debated it was argued that the cost of it to large employers would be negligible. Hmm. In an economy where top line growth is also negligible large companies can only remain viable by cutting costs. Women of child bearing age are a considerable cost driver and even more so under Obamacare. We could be looking at the beginning of the end of family medical plans.

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