Disney to Halt Medical Insurance for Worker’s Spouses with Job Coverage
TL/DR –
Disney has announced it will cease to provide medical insurance to US employees’ spouses if they already have coverage through their own job, citing rising healthcare costs as the reason. The change will not affect other dependents, or dental and vision benefits for spouses. The decision comes as US businesses face increasing healthcare costs, with a predicted 9.5% rise next year, leading many companies to consider similar strategies to reduce expenses.
Disney to Limit Employee Spousal Medical Coverage
In response to increasing healthcare costs, Disney is modifying its employee benefits. Beginning in 2023, the company will stop providing medical insurance for the spouses of U.S. employees if their spouses are eligible for coverage through their own employers. This change will not affect other dependents or dental and vision benefits for spouses.
“Similar to many large employers, we are adjusting our employee benefits to tackle increasing healthcare costs nationwide,” Disney stated. Joshua Lavine, CEO of insurance advisory firm Capitol Benefits, labeled Disney’s decision as highly unusual. “We’ve observed employers reducing their contribution towards the spouse’s coverage, but not entirely removing the coverage option,” Lavine said.
Although the policy change doesn’t affect spouses who are unemployed or aren’t offered medical insurance at their jobs, Lavine warned it could pose issues for those undergoing long-term health treatments. He proposed a more feasible solution would be to decrease or eliminate the employer contribution for spouses.
Disney to Introduce Employee Stock-Purchase Program
Disney, which had about 172,000 U.S. employees as of September 2025, also plans to launch an employee stock-purchase program later in 2027, pending approvals.
Disney’s move happens at a time when U.S. employers’ healthcare expenditures are projected to rise 9.5% next year, marking the fourth consecutive annual near-double-digit increase.
Other Big Employers Following Suit
Disney is not the only company introducing cost-saving measures. Starbucks recently announced it would stop covering GLP-1 weight loss medications for benefits-eligible employees starting in October. Starbucks offers health benefits to full-time and part-time employees who work at least 20 hours weekly.
In a recent survey, almost half of U.S. employers with 500 or more employees plan to revise their medical plans next year, such as increasing deductibles or copays – changes that would result in higher out-of-pocket costs for workers.
Some companies are even making cuts to other types of employee benefits. For instance, Zoom reduced its paid parental leave, while Deloitte plans to trim annual PTO, a pension plan, and IVF funding for some of its U.S. employees starting this January.
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