Disney will stop covering spouses of US employees in 2027 if they have job-based health insurance, joining a trend of companies cutting benefits amid rising healthcare costs. The change, first reported by Puck, affects medical plans but not dental or vision coverage, according to multiple sources.
Disney’s decision to phase out medical insurance for spouses with alternative coverage marks a significant shift in corporate benefits policy, reflecting broader industry trends. The entertainment giant, which employs about 172,000 people in the US as of September 2025, confirmed the change in a statement to Business Insider, citing rising healthcare costs nationwide.
The policy, effective in 2027, applies only to medical plans, leaving dental and vision benefits untouched, according to sources.
Disney’s Policy Shift and Industry Context
Aon, an insurance brokerage, projects US employers’ healthcare expenses to rise 9.5% next year, the fourth straight year of near-double-digit increases. Like a growing number of large employers, we're making measured adjustments to our employee benefits in response to rising healthcare costs nationwide,
Disney said in a statement, echoing a phrase repeated across multiple sources.
Joshua Lavine, CEO of Capitol Benefits, called Disney’s approach highly unusual,
noting that while employers often reduce contributions toward spousal coverage, they rarely eliminate the option entirely. 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, per Business Insider. The policy could disproportionately affect spouses undergoing long-term treatments, according to Lavine.
Employee Reactions and Expert Analysis
Eric Chaisson, Disney’s EVP of total rewards and employee services, outlined the changes in a memo to staff, emphasizing that most medical plans
would require employees to actively choose their coverage for 2027. Unlike in past years, your current coverage will not automatically roll over: nearly all employees will need to actively choose their plans and re-enroll any dependents,
he wrote, according to Business Insider.
Stock Purchase Plan and Benefits Changes
Disney also announced plans to introduce an Employee Stock Purchase Plan (ESPP) in 2027, pending approvals. The program, which would let employees buy shares at a discount, is intended to build company ownership,
according to Chaisson. However, details about eligibility and design remain still being finalized,
per Business Insider.
Impact on Spouses and Dependents
The policy change will affect spouses and domestic partners who are eligible for coverage through their own employers. According to Laughing Place, two-thirds of Disney employees with medical benefits do not enroll their spouses, but the exact number of affected individuals remains unclear. The company also plans to expand its Centers for Living Well,
medical facilities where employees can access primary care and pharmacies, but these will no longer be available to spouses excluded from the new policy.
Avclub reported that the move could likely impact lower-paid workers and hourly employees most,
as they are more likely to rely on spousal coverage. The policy does not apply to unemployed spouses or those without employer-provided insurance, but Lavine warned of potential challenges for those with ongoing health needs. 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.
What Comes Next for Employers?
The long-term implications of these changes remain unclear. While some experts argue that eliminating spousal coverage is an extreme measure, others see it as a necessary response to inflationary pressures. A better solution is to reduce, or if you have to, eliminate the employer contribution for spouses,
Lavine said, per Business Insider. As Disney and other companies navigate these challenges, the focus will remain on balancing cost management with employee well-being.
