Albertsons cuts spouse health coverage for workers eligible through other employers

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Albertsons cuts spouse coverage

Highlights

Albertsons will end medical insurance for employees’ spouses and domestic partners with access to their own employer coverage, starting in 2027.
Additional 2027 changes at Albertsons include higher employee paycheck contributions, two fewer network plans, and increased deductibles and out-of-pocket maximums.
Albertsons' move follows similar 2027 benefit reductions at Disney, Starbucks, and Deloitte, underscoring rising cost-cutting pressure in employer healthcare expenses.

Benefit changes for 2027 plans

As reported by Business Insider, Albertsons says it will stop offering medical insurance to employees' spouses and domestic partners if they have access to coverage through their own jobs, starting next year.

The grocery company outlined the change in an open enrollment guide posted on its website. Albertsons says inflation, higher prescription drug costs, provider consolidation, and shortages in the healthcare workforce are driving the expected increase in healthcare spending. It says the 2027 benefit changes are intended to reduce projected cost growth while maintaining a benefits program the company considers sustainable.

Other changes for the coming plan year include higher weekly paycheck contributions from employees, the removal of two network plans, and higher deductibles and out-of-pocket maximums for some other plans. The company does not immediately respond to a request for comment in the report.

Wider pressure on employer healthcare spending

Albertsons' move reflects broader cost-cutting pressure across large employers as benefit expenses continue to rise. Disney, Starbucks, and Deloitte have also introduced changes to their benefits packages for 2027, with Disney likewise ending coverage for spouses and partners who can obtain insurance through their own employers.

Joshua Lavine, chief executive of Capitol Benefits, told Business Insider in August that employers have been reducing their contribution toward spouse coverage, but eliminating the coverage option entirely for eligible spouses is less common. That suggests Albertsons' decision marks a more aggressive step in managing healthcare costs within the retail sector.

In our earlier article on UBS Global Wealth Management’s inflation outlook, we covered the bank’s expectation that the Federal Reserve could extend its tightening cycle with additional rate hikes into March 2027. The report highlighted how persistent price pressures—and risks ranging from supply disruptions to shifting demand dynamics—could keep borrowing costs higher for longer, tightening financial conditions for businesses and consumers.

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