Albertsons won't insure employees' spouses if they're eligible for their own health coverage

• Albertsons will not provide health coverage for employees’ spouses who can get insurance elsewhere.
• The company says the move is intended to manage rising costs, which it expects to increase 9.5%.
• In August, Disney also pulled back on benefits it will provide for workers’ families.

Albertsons is curbing health care benefits for employees due to rising healthcare costs.

Starting next year, the grocery giant will no longer offer medical insurance plans to employees’ spouses and domestic partners who have jobs that provide such coverage. The grocery giant detailed the change in an open enrollment guide posted to its website.

Albertsons said it expects its healthcare costs to increase 9.5% next year due to inflation, higher prescription drug costs, provider consolidation, and shortages in the healthcare workforce.

“We are making changes to our benefits in 2027 to reduce the projected cost increase while still maintaining a quality benefits program that meets the needs of our associates at a cost sustainable for the company going forward,” it said.

The company did not immediately respond to a request for comment.

Other changes this year include higher weekly paycheck contributions from employees, the elimination of two network plans, along with higher deductibles and out-of-pocket maximums for some other plans.

Large companies Disney, Starbucks, and Deloitte have also introduced cost-saving changes to their benefits packages for 2027. Disney is also dropping coverage for partners and spouses who can get insurance from their own jobs.

“We’ve seen employers reducing their contribution toward the spouse’s coverage, but not eliminating the coverage option for those people,” Capitol Benefits CEO Joshua Lavine told Business Insider in August, regarding Disney’s decision.

Read the original article on Business Insider