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Disney will stop covering working spouses under its health plan
The company says the spousal carve-out will apply in 2027 for more than 200,000 US employees when a spouse can get employer coverage elsewhere, regardless of cost.
Walt Disney Company will stop covering working spouses under its healthcare plan starting in 2027 if those spouses have access to coverage through their own employers, according to guidance first reported by Puck and later confirmed by Disney. The change applies to Disney's more than 200,000 US employees and does not affect coverage for children or other dependents.
The carve-out is triggered only when a spouse has employer-sponsored coverage available elsewhere, regardless of how comprehensive it is. Spouses who do not have coverage through their own employer, those covered only by dental or vision plans, and domestic partners in the same situation are not affected, and dental and vision benefits for spouses remain unchanged.
Insurance advisory CEO Joshua Lavine, of Capitol Benefits, characterized the move to Yahoo Finance as an extreme approach compared with what large employers typically do. He said employers have often reduced contributions toward spousal coverage but have generally not eliminated the coverage option entirely.
The Affordable Care Act requires large employers to offer coverage to employees and dependent children but does not require covering spouses. KFF's 2024 Employer Health Benefits Survey found that among firms with 200 or more workers, 10.0% already exclude working spouses when those spouses have access to coverage elsewhere, and 13.0% add conditions such as surcharges or plan restrictions.