Give Me a Break: UPS Drops Coverage Over Obamacare

August 21, 2013

Today, UPS announced that it will be dropping 15,000 spouses from its insurance program. In a memo to their employees, UPS cites Obamacare numerous times for the policy change and notes they will not be the only ones cutting spousal coverage.


From The Atlanta Business Journal: “United Parcel Service Inc. plans to remove thousands of spouses from its medical plan because they are eligible for coverage elsewhere. The Atlanta-based logistics company points to the Affordable Care Act, or Obamacare, as a big reason for the decision, reports Kaiser Health News. … According to Kaiser, UPS told white-collar workers two months ago that 15,000 working spouses eligible for coverage by their own employers would be excluded from the UPS plan in 2014.”


So what was the administration’s response to the news that thousands of spouses now won’t be able to keep their health care coverage (even though they may like it)?  Don’t worry, be happy.  No one’s losing their coverage, businesses love Obamacare, everything is going great.


Health and Human Services Spokesperson Joanne Peters: “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.”


This isn’t the first time the administration has seemed to prefer to stick its head in the sand than deal with the unintended consequences of the law. With the number of part-time employees skyrocketing on reports that more businesses are holding back because of Obamacare, the White House continues to ignore first-hand accounts and insists there’s “no evidence” of negative impacts.


From the White House: “The White House … released data that it said shows no evidence that the law known as the Patient Protection and Affordable Care Act has accelerated healthcare costs, reduced full-time employment or punished small businesses including restaurants”


And even today, Reuters reports that Obamacare is behind the increase of part-time employment.  But instead of acknowledging those reports, the White House instead suggested that there could be evidence showing Obamacare is actually improving prospects for businesses.

That’s right.  Businesses are cutting back on full time employees, refusing to expand and hire and dropping coverage for spouses because the ACA is making it easier to provide insurance and easier to hire.  Time for a reality check.

Clearly the administration is completely out of touch with how Obamacare is actually affecting the American economy. Unfortunately, the real world consists of more than just candy cane and lollipop fantasies. Businesses have to make real dollars and cents decisions that impact real people.

If the administration is going to take a break from reality, the least they could do is give us a break from the talking points.

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