Several large employers have announced they are dropping health coverage for some employee spouses because of rising costs stemming from ObamaCare, prompting Republican lawmakers to raise new concerns about the law. The University of Virginia and UPS recently informed employees they are no longer offering spousal coverage to those who are able to obtain insurance elsewhere. As a result, thousands of Americans will no longer be able to choose their benefits.
UVA said the change is necessary because ObamaCare is projected to add $7.3 million to the cost of the university’s health plan in 2014 alone, Fox News reported.
“The modified plan will provide new options and reward those who participate in wellness programs,” said UVA Vice President and Chief Human Resources Officer Susan Carkeek 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.”
The rising cost of ObamaCare "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.
Republicans on the House Energy and Commerce Committee are not impressed with how ObamaCare is affecting spousal benefits.
“American families who are already grappling with higher health care costs under the law are also coming face-to-face with the stark reality that they will lose the coverage they have and like,” their office said in a statement.
“The health care law will make health insurance more affordable, strengthen small businesses and make it easier for employers to provide coverage to their workers,” said Department of Health and Human Services spokeswoman Joanne Peters.