On Health Insurance, Will Other Corporations Follow UPS’ Lead?
The Affordable Care Act is changing the way Americans have medical coverage on various levels. The White House says the goal is to provide health benefits to millions who wouldn’t have it otherwise.
But Professor David Laband, an economics professor from Georgia Tech, says someone is going to have to pick up the tab for these changes.
“In effect, what we are talking about here is a cost shift from the companies to taxpayers, individual citizens, who are going to be, in essence, coerced to sign up for the plan and that’s not a good sign.”
As WABE reported yesterday, UPS says the ACA – also known as Obamacare – is among the factors behind a decision by UPS to drop as many as 15,000 employee spouses from the company’s health insurance and have them look elsewhere for coverage. Laband expects that will have a snowball effect.
The audio of the story as broadcast.
“I would think that the Blue Cross/Blue Shield system for the state of Georgia would have enormous financial incentives to, in effect, follow the lead of UPS.”
Kaiser Health News, collaborating with USA Today, reported yesterday that a survey found 4% of large employers are excluding employee spouses this year and 8% say they will be doing so next year. The KHF/USA Today story also noted that the UPS spouses may have a hard time finding coverage equal to the coverage they have now through the company.
As for other major Atlanta-based businesses:
*** In a written statement, Delta Airlines says it is facing increased healthcare expenses and will “absorb the vast majority of those increased costs.”
*** Home Depot says it’s still working out details regarding any possible changes to its coverage.
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