Ford to Charge for Spousal Health Coverage

March 15, 2006 ( - In its continued effort to reduce health care costs, Ford Motor Company has announced it will charge for health insurance and dental coverage for worker's spouses or same-sex domestic partners that are eligible for non-Ford health insurance.

On June 1, workers will begin paying $110 a month for health insurance and $11 a month for dental benefits for their spouses or same-sex domestic partners who have access to other coverage, the Detroit News reports.

According to the Detroit News, additional changes that will be implemented as of June 1 include:

  • Active salaried workers who opt for the Ford Medical Plan will continue to avoid monthly premiums, but their annual deductibles will increase by nearly 17%.
  • Workers who select an alternative health plan will see their monthly premiums go up 30 percent on average, while their annual deductibles will rise 33%.
  • Ford will cap health care spending for retirees and their surviving spouses at the average 2006 level. After that, any increases in insurance premiums will have to be paid entirely by the retirees or their survivors.

Ford spent $3.5 billion on health care expenses in 2005, compared with $3.1 billion the previous year, according to the Associated Press. The automaker has not projected how much it expects to spend on health care this year.

Recently a federal judge gave tentative approval to Ford’s retiree health-care concessions deal with the United Auto Workers (See Judge Approves Ford Retiree Health Pact ).