http://AIADirectQuote.com UPS Concerned About ObamaCare Costs - Are You? In March 2010, Healthcare Reform was signed into law. Healthcare Reform contains provisions that have changed and will continue to change the health insurance industry in substantial ways. Here is a company that is seeing the effects and higher cost for it's operation. The company United Parcel Service Inc. plans to drop health-insurance benefits for working spouses of nonunion employees if they can get coverage elsewhere. With the changes in the new health care law it sees no other choice and blames it for their decisions. The company has over 15,000 employess and and has nearly 33,000 spouses it covers currently; however will drop those spouses effective January 1, 2014 for spouses of United States employees. UPS cited a benefits consultant's survey that found more companies are planning on restricting benefits for working spouses. UPS said it was making the change because of rising health care costs and the 2010 law championed by President Barack Obama. The company said that it considered letting employees pay extra to cover their working spouses but decided that would be difficult to do. "Since the Affordable Care Act requires employers to provide affordable coverage, we believe your spouse should be covered by their own employer — just as UPS has a responsibility to offer coverage to you," the company said in a memo to employees. According to benefits consultant Mercer LLC, relatively few large companies exclude coverage for spouses who have the option of other employer coverage. Mercer said that in 2012, just 6 percent of companies with 500 or more employees excluded such spouses, although that was double the percentage in 2008. It said another 6 percent levied a surcharge to cover those spouses. "Employers are thinking about it because (health insurance) costs are continuing to go up," said Mercer partner Joan Smyth. "They're trying to walk a fine line between being fair to their employees but also being fiscally responsible." Smyth said employers are waiting to see whether spouses can find coverage from public insurance exchanges to be created under the health law. Other provisions of the law, such as a per-participant fee to subsidize premiums for high-cost people in the individual-policy market, encourage employers to reduce the number of people they cover, she said. Paul Fronstin, a senior research associate at the Employee Benefit Research Institute, said that the percentage of employers booting working spouses off plans is still small — it's more common to simply add a surcharge for insuring them. "But trends start with small numbers," he said. "There's a herd mentality. When you have a big employer like UPS do this, it's easier for other employers to do the same thing." In explaining the change to employees, UPS cited a survey by consultant Towers Watson. That firm surveyed 583 employers

1. UPS Concerned About
ObamaCare Costs -
Are You Concerned
With Your Cost?

2. In March 2010, Healthcare Reform
was signed into law. Healthcare
Reform contains provisions that
have changed and will continue to
change the health insurance
industry in substantial ways. Here
is a company that is seeing the
effects and higher cost for it's
operation.

3. The company United Parcel Service
Inc. plans to drop health-insurance
benefits for working spouses of
nonunion employees, if they can get
coverage elsewhere. With the
changes in the new health care law it
sees no other choice and blames it for
their decisions.

4. The company has over 15,000
employees and and has nearly 33,000
spouses it covers currently; however
will drop those spouses effective
January 1, 2014 for spouses of United
States employees.
UPS cited a benefits consultant's
survey that found more companies
are planning on restricting benefits
for working spouses.

5. UPS said it was making the change
because of rising health care costs
and the 2010 law championed by
President Barack Obama. The
company said that it considered
letting employees pay extra to cover
their working spouses but decided
that would be difficult to do.

6. "Since the Affordable Care Act
requires employers to provide
affordable coverage, we believe
your spouse should be covered by
their own employer — just as UPS
has a responsibility to offer
coverage to you," the company
said in a memo to employees.

7. According to benefits consultant
Mercer LLC, relatively few large
companies exclude coverage for
spouses who have the option of
other employer coverage.

8. Mercer said that in 2012, just 6
percent of companies with 500 or
more employees excluded such
spouses, although that was
double the percentage in 2008. It
said another 6 percent levied a
surcharge to cover those spouses.

9. "Employers are thinking about it
because (health insurance) costs
are continuing to go up," said
Mercer partner Joan Smyth.
"They're trying to walk a fine line
between being fair to their
employees but also being fiscally
responsible."

10. Smyth said employers are waiting to
see whether spouses can find
coverage from public insurance
exchanges to be created under the
health law. Other provisions of the
law, such as a per-participant fee to
subsidize premiums for high-cost
people in the individual-policy
market, encourage employers to
reduce the number of people they
cover, she said.

11. Paul Fronstin, a senior research
associate at the Employee Benefit
Research Institute, said that the
percentage of employers booting
working spouses off plans is still
small — it's more common to simply
add a surcharge for insuring them.

12. "But trends start with small
numbers," he said. "There's a herd
mentality. When you have a big
employer like UPS do this, it's
easier for other employers to do
the same thing."

13. In explaining the change to
employees, UPS cited a survey by
consultant Towers Watson. That
firm surveyed 583 employers and
reported growing interest in
reducing coverage for working
spouses.

14. It said 4 percent already exclude
spouses who can get coverage
through their own employer and
another 8 percent plan that in
2014. Many more — 20 percent
now and rising to 33 percent next
year — impose a surcharge for
covering that same working
spouse.

15. Andy McGowan, a UPS
spokesman, said the change was
part of the company's effort to
keep health-insurance premiums
at or below current levels for a
"significant" number of
employees. He said the company's
premiums have risen sharply in
recent years.

16. UPS told employees that spouses
will no longer be eligible for
physical and mental health
benefits and prescription-drug
coverage.

17. "However, you may enroll her in
dental, vision and supplemental
benefits such as life insurance"
even if the spouse's employer
provides those, UPS told workers.
It added that spouses eligible for
Medicare won't be excluded from
coverage.

18. The change also won't affect UPS'
union workers, many of them
represented by the Teamsters. Their
health benefits are spelled out in
labor contracts.
The new policy will produce one benefit
for the nonunion employees: Those
whose spouses lose UPS coverage will see
their share of their insurance decline.
The company said it could be almost
$1,600 for some workers.

19. The UPS change was first reported
by Kaiser Health News and USA
Today.
We cannot predict the outcome of
any future legislation or litigation
related to Healthcare Reform. As
described under “Item 1.
Business—Health Insurance
Industry and Market
Opportunity,” we expect

20. Healthcare Reform to result in
profound changes to the
individual health insurance
market and our business.
Get a FREE quote on your health
insurance at:
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Not What You
Know, But What
You Do With What
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