Disney employees are getting a less magical update to their benefits.
Employees were recently notified that, starting in 2027, they will no longer be able to add a spouse to their Disney health plan if the spouse has access to medical coverage through their own employer, a Disney spokesperson confirmed to The Independent. Other dependents will not be affected.
Puck first reported the change, which does not affect dental or vision benefits, saying more than 200,000 U.S. Disney employees were notified.
“Like a growing number of large employers, we're making measured adjustments to our employee benefits in response to rising healthcare costs nationwide,” Disney told The Independent in a statement.
“We will be communicating these changes in more detail with our employees over the next few months. As always, we remain committed to providing our employees with a comprehensive package of high-quality coverage and other benefits that support their total health and well-being.”
Many affected spouses could end up with higher premiums, bigger deductibles or less coverage through their own employers. The change could hit lower-paid, hourly Disney workers especially hard, according to Puck and Business Insider.
The health insurance change is part of larger adjustments to Disney’s ironically named “Total Rewards” program, which covers employee compensation and benefits. Disney said it will add several employee benefits, including an Employee Stock Purchase Plan in 2027, expanded Disney health centers in Burbank, Anaheim and Central Florida, and doubling Employee Assistance Program counseling sessions from 10 to 20 per topic each year.
The cuts come as new CEO Josh D’Amaro pushes to reduce costs, even as Disney reported third-quarter revenue of $25.25 billion and $5.6 billion in operating income earlier this month, up 7 percent and 21 percent, respectively, Variety reports.
Disney has also gone through three rounds of layoffs this year, including about 150 jobs cut at Pixar in July. The company plans to spend at least $9 billion on stock buybacks this year while cutting health care benefits for some employees’ families, which is a contrast that has raised some eyebrows.
Joshua Lavine, CEO of insurance advisory firm Capitol Benefits, told Business Insider that Disney’s decision is unusual.
"We've seen employers reducing their contribution toward the spouse's coverage, but not eliminating the coverage option for those people," he said.
Lavine said the change could be especially difficult for spouses receiving long-term medical care, even though those without access to employer-sponsored insurance are not affected.
"There are so many options for employers right now to make coverage available to employees that this is really the extreme, nothing-else-can-work solution," he said. "A better solution is to reduce, or if you have to, eliminate the employer contribution for spouses."
