Disney to Cut Medical Insurance for Spouses With Other Coverage Options
Medical Insurance: Disney plans to stop offering company medical insurance to spouses who have access to coverage through another employer, starting in 2027.
Medical Insurance: Disney’s upcoming health insurance change will affect spouses with access to alternative employer-sponsored coverage. The policy is set to take effect in 2027. Source - Business Insider.
Medical Insurance: The Walt Disney Company will stop offering medical insurance to US employees’ spouses if those spouses have access to health coverage through their own jobs, a Disney spokesperson confirmed to Business Insider. The policy takes effect in 2027 and does not extend to employees’ other dependents.
The change was first reported by Puck and was communicated to employees via an internal memo. According to WDW News Today, more than 200,000 employees were notified that they will no longer be able to enroll a spouse on Disney’s insurance plan starting next year if that spouse has any job-based healthcare option available to them, even one considered inferior to Disney’s plan. Disney employed approximately 172,000 people in the US as of September 2025, according to Business Insider.
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Medical Insurance: Company Cites Rising Healthcare Costs
In a statement to Business Insider, Disney said: “Like a growing number of large employers, we’re making measured adjustments to our employee benefits in response to rising healthcare costs nationwide.” The company added that it remains “committed to providing our employees with a comprehensive package of high-quality coverage and other benefits that support their total health and well-being,” and said further details would be shared with employees in the coming months.
The policy change does not apply to dental or vision benefits for employees’ spouses, according to Business Insider. Eric Chaisson, Disney’s EVP of Total Rewards and Employee Services, said in a memo cited by WDW News Today that current coverage will not automatically roll over, meaning nearly all employees will need to actively re-enroll for 2027 and choose new plans for any dependents. A person familiar with the matter told Business Insider that Disney is not switching health insurers, but is consolidating some well-being programs. The company also said it will double the number of counseling sessions available through its Employee Assistance Program.
Medical Insurance: Industry Expert Calls the Move “Highly Unusual”
Joshua Lavine, CEO of insurance advisory firm Capitol Benefits, told Business Insider that Disney’s approach stands out from typical industry cost-cutting. “We’ve seen employers reducing their contribution toward the spouse’s coverage, but not eliminating the coverage option for those people,” Lavine said.
Medical Insurance: Part of a Broader Benefits Overhaul
The spousal coverage change coincides with other benefit announcements at Disney. The company plans to introduce an Employee Stock Purchase Plan later in 2027, pending approvals, Business Insider previously reported.
Disney is not alone in scaling back employee health benefits. Starbucks recently announced it would no longer cover GLP-1 medications for weight loss under its employee health plan, according to Business Insider.
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Medical Insurance: Rising Costs Across the Employer Landscape
Disney’s move comes as US employers brace for another sharp rise in healthcare spending. According to a report released by Aon on August 20, 2026, US employer healthcare costs are projected to rise 9.5 percent in 2027, pushing average costs above $19,000 per employee. Aon said this would mark the fourth consecutive year of near-double-digit cost increases, a stretch the firm described as one of the most sustained periods of healthcare inflation employers have faced in decades.
Aon based its projections on data from more than 1,100 US employers covering 7.9 million employees and $135 billion in 2026 healthcare spending. The firm attributed the increases to rising medical utilization, growing prevalence of chronic disease, and increased spending on prescription drugs, including specialty medications and GLP-1 therapies. Mike Pasterick, Aon’s North America Health Solutions Leader, said employers have now experienced several consecutive years of cost increases approaching double digits, a trend he said is influencing decisions “from benefits strategy and employee affordability to broader workforce and financial planning priorities.”
Aon noted that employers are expected to cover about 82 percent of health-plan costs in 2026, while employees are projected to spend an average of $5,297 on healthcare this year, including payroll contributions and out-of-pocket costs.
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