The University of Virginia says Obamacare is one reason why it announced coverage cuts “major changes” to its employee health care plans Wednesday.
The university said the Affordable Care Act will add $7.3 million to the cost of the university’s health care plan next year, and that it will no longer be offering spousal coverage for employees whose spouses have access to coverage elsewhere.
It also said that UVA could end up having to pay millions of dollars more in taxes if the schools’ plans go over certain cost thresholds.
“Ironically, by providing generous benefits, the University becomes exposed to a federal excise tax known as the ‘Cadillac tax,’” Vice President and Chief Human Resources Officer Susan Carkeek said in a statement.
The changes include dropping working spouses from UVA employees plan if they have access to “affordable health care that provides minimum value” elsewhere starting on Jan. 1.
An employee who keeps wants to keep his or her spouse on the plan will have sign an affidavit asserting that the spouse does not have access to affordable healthcare elsewhere.
Children will still be able to be covered on the UVA plan, even if alternate coverage is available through a spouse.
The UVA announcement comes on the heels of a similar announcement from the United Parcel Service this week.
In a memo to its employees, UPS said that the rising costs of health care and the costs associated with Obamacare will cause the company to drop some employees’ spouses from its plans next year.