Unionized UPS to drop health insurance for 15,000 spouses because of Obamacare

The Washington Times reports. (H/T Letitia)


Citing Obamacare, the United Parcel Service plans to remove 15,000 spouses from its health care plan because they are eligible for coverage elsewhere.

Rising medical costs, “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 in a memo to employees, Kaiser Health News reported.

UPS expects the move will save about $60 million a year, company spokesman Andy McGowan said.

The health law requires large employers to cover employees and dependent children, but not spouses or domestic partners, Kaiserreported.

On Tuesday, Forever 21 Inc. became the latest national company to cut employee hours to counter the impact of Obamacare, the Atlanta Business Chronicle reported.

The Heritage Foundation has more on that Forever 21 story.


A leaked memo shared last week on social media with the hashtag #Never21 proves the company capped some full-time workers at 29.5 hours a week as of August 18, resulting in a loss of the health coverage and other benefits offered to full-time workers.

Conservatives have warned that the provision under Obamacare defining a full-time worker as one who works 30 hours a week or more incentivizes businesses to drastically cut workers’ hours to avoid the heavy financial burden of mandatory insurance requirements under the bill.

Forever 21 joins several fast food chains that have cut workers’ hours to less than 30 in the past few months, ahead of the provision taking effect.

I’ve blogged about several of these companies who are having to adjust to Obamacare, but actually, this is not happening to a company here and a company there.

Reuters explains:

U.S. businesses are hiring at a robust rate. The only problem is that three out of four of the nearly 1 million hires this year are part-time and many of the jobs are low-paid.

Faltering economic growth at home and abroad and concern that President Barack Obama’s signature health care law will drive up business costs are behind the wariness about taking on full-time staff, executives at staffing and payroll firms say.

Employers say part-timers offer them flexibility. If the economy picks up, they can quickly offer full-time work. If orders dry up, they know costs are under control. It also helps them to curb costs they might face under the Affordable Care Act, also known as Obamacare.

Now on first glance, it would seem that conservatives should be happy because the leftists who voted for Obama are finally getting what they deserve.

However, my conservative deist friend ECM says “not so fast”:

This would be entertaining, but this is a feature, not a bug.

Remember: they passed the present Ocare on the premise that 44-million were uninsured (never mind how bogus that stat was/is)–now that the ranks are being swelled by the self-same act, there will be tens of millions more which, as the left is wont to do, will be used as ‘proof’ that we need single-payer, not that Ocare wrecked a working market for healthcare.

(No, it doesn’t matter that everyone against this law said *exactly* this would happen, because, to the left, cause and effect and accurate predictions–despite their pretensions at being scientifically-minded–are never valid unless it confirms their biases, so they’ll just blame ‘big business’ and the bogeyman for why it’s going in exactly the direction the sane said it would. The media will reinforce this and, pow, single-payer.)

So laugh while you can–it won’t be funny for long.

I think that this could go either way. If the media covers up for Obama because they want single payer, and the conservatives pick someone like Mitt Romney instead of Bobby Jindal or Paul Ryan or Ted Cruz, then we are going to lose. We are going to lose because people will blame the decisions of private businesses instead of the Obamacare that forced them to make those decisions.

We still have the 2014 elections coming up. The public needs to have a good taste of what Obamacare does in order to understand what they’re getting. If they still choose to elect Democrats after seeing the effects of socialism, then they’ll have to live with socialism. I’m fine with it. I don’t plan to be working when the bill comes due, and I’m not going to be paying for big houses and college tuition, either.

One thought on “Unionized UPS to drop health insurance for 15,000 spouses because of Obamacare”

  1. Ironic interpretation: “Rising medical costs, ‘combined with the costs associated with the Affordable Care Act, have made it [unaffordable] to continue providing the same level of health care benefits to our employees at an affordable cost,'”


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