Disney Workers to Lose Key Health Benefit Amid Rising Healthcare Costs: Who Gets to Keep Coverage?

Disney employees in the US are set to lose a key health benefit next year under a new policy targeting spouses with access to insurance through their own jobs. The entertainment giant will no longer offer medical insurance to the spouses of US employees if those spouses can obtain health cover through their own employers.

The change does not apply to dental or vision benefits for spouses. Other dependants will also remain unaffected. Disney said it was making measured adjustments to employee benefits as healthcare costs rise nationwide. The decision could affect thousands of families across one of America's largest employers, Business Insider reported, citing a Disney spokesperson. Disney had about 172,000 US employees as of September 2025.

Who Will Remain Covered?

The policy only applies to spouses who have access to employer-sponsored medical insurance through their own jobs. Spouses who are unemployed or whose employers do not provide medical insurance can continue to receive medical coverage through Disney. Children and other dependants are not affected by the change.

The policy therefore does not end spousal medical benefits altogether. Instead, it removes Disney's medical coverage option for spouses who can obtain job-based insurance elsewhere. For affected employees, the change means their spouse will need to rely on the health plan offered through their own workplace.

Benefits Expert Calls Disney's Move Unusual

Joshua Lavine, chief executive of insurance advisory firm Capitol Benefits, described Disney's approach as highly unusual. He told Business Insider that employers have reduced their contributions towards spousal coverage in the past.

However, removing the coverage option for spouses who can access another employer plan was different. Lavine said the decision could also create difficulties for people undergoing long-term medical treatment, depending on the cover available through the spouse's own employer.

He said employers had other options for controlling costs, including reducing or eliminating their contribution towards spousal coverage rather than removing the option entirely.

Healthcare Costs Continue to Rise

Disney's decision comes as employers across the US face another sharp increase in healthcare spending. Insurance broker Aon has projected that employer healthcare costs will rise by 9.5% next year.

The increase would mark the fourth consecutive year of near-double-digit growth. A survey by benefits consultancy Mercer found that nearly half of US employers with 500 or more workers planned to make changes to their medical plans next year.

Those changes could include higher deductibles and copayments, increasing out-of-pocket costs for workers. Other large employers have already reduced benefits. Starbucks has announced that it will stop covering GLP-1 medications prescribed for weight loss for eligible employees from October.

In related development, Zoom has also reduced paid parental leave this year, while Deloitte plans to cut or scale back several benefits for some US employees.

Disney Cuts Benefits as Profits Rise

The health insurance change comes as Disney continues to report growth across several parts of its business. In the June quarter, revenue from Disney+ and Hulu rose 11% to $5.53 billion. Operating income in the entertainment streaming segment more than doubled to $712 million.

Disney Experiences also reported higher results. Revenue rose 10% to $10 billion, while operating income increased 20% to $3 billion. Overall, Disney reported net income of $2.63 billion on $25.2 billion in revenue.

Chief executive Josh D'Amaro has also said Disney remains focused on reducing costs across the company, including labour and other corporate expenses. The company is also planning to introduce an employee stock-purchase programme later in 2027, subject to approvals.

What Affected Families Need to Know

The change will take effect next year and will apply only to medical insurance. Affected families will need to consider the health plan available through the spouse's own employer. Disney has not removed medical coverage for children and other dependants under the new policy. Spousal dental and vision benefits will also remain available.

The change reflects the growing pressure on major US employers to manage healthcare spending as medical costs continue to rise.

For Disney workers, the new policy creates a clear dividing line. A spouse without access to job-based medical insurance can remain on the Disney plan. A spouse with an employer-sponsored option will no longer be eligible for Disney medical coverage. The final impact will depend on the terms of the alternative insurance available to each affected family.