Are Insurance Companies Pushing Out Spouses?

The health care overhaul passed last year promised more affordable coverage, but many businesses are saying: show us the savings. As premiums continue to rise, businesses are doing what they can to cut costs, which might include separating spouses. In what may not be a new trend, but one that is gaining ground, more and more businesses are saying to employees, "Sorry, we're not going to cover your spouse any more." Lehigh County certainly isn't immune to the woes of the current economy. "We're always looking at our health care costs and figuring out how to keep down a little bit," said Tom Muller, director of administration for Lehigh County, who said yearly health coverage for the county costs $25 million. "One of the bigger ticket items on our budget." So to cut costs, in January 2008, new hires couldn't get health coverage for their spouses if they could be covered by their own employer. "They're only asking someone who is employed by another company to take insurance provided by that company for primary insurance," said Anne Baum, vice president, Capital Blue Cross of the Lehigh Valley. Baum said it's called "spousal coordination." It's not a new trend, but it is one that is gaining ground, especially in the private sector as employers try to offset the skyrocketing costs of health care. "This is an initiative being driven by what they can and can't afford," said Baum. But will costs rise for couples and families now forced to split their health care plans? "Coverage is going up, so amount out of pocket for health care is going up," said Muller. "It really depends on the type of business an employer group is in and depends on how much they are willing to pass on cost of health care to employees," said Baum, who said spousal coordination is one of the more mild ways employers can cut costs. Decreasing benefits and increasing monthly costs to employees are more drastic ways. Copyright 2010 WFMZ. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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