The Walt Disney Company is removing more than 1,000 spouses and domestic partners of employees from its medical insurance plans as healthcare costs continue to rise.
Beginning in 2027, spouses and domestic partners of Disney’s U.S. employees will no longer qualify for company medical coverage if their own employers offer health insurance. The policy excludes working partners regardless of whether their employer’s plan carries higher deductibles or narrower provider networks.
The Main Street USA Train Station at Walt Disney World – Photo Credit: That Park Place
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According to a report from Puck, later confirmed by The Hollywood Reporter, the change will affect more than 1,000 people currently enrolled in Disney’s medical plans through their spouses or domestic partners.
Spouses and domestic partners who are unemployed, self-employed, or work for companies without medical benefits will remain eligible for Disney’s plans. The change will not affect dental or vision coverage, and employees may continue covering their eligible children and other dependents.
Disney confirmed the policy after more than 200,000 employees reportedly received information about changes to the company’s benefits program.
“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 said.
Families Could Pay More for Inferior Coverage
The restriction could leave affected families paying higher premiums, deductibles, and other out-of-pocket expenses. It may be especially disruptive for spouses undergoing long-term medical treatment who must switch insurance providers and potentially find new doctors.
Joshua Lavine, CEO of insurance advisory firm Capitol Benefits, described Disney’s decision as unusually severe. Although employers sometimes reduce their contributions toward spousal plans or impose additional fees, completely excluding spouses with access to other coverage remains less common.
Cinderella Castle at Walt Disney World During a Stage and Fireworks Show – Photo Credit: M. Montanaro
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“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,” Lavine told Business Insider.
The change comes as employers across the country confront rapidly increasing medical expenses. Healthcare costs for U.S. employers are projected to rise by approximately 11 percent in 2027, continuing several years of substantial increases.
Disney Reshapes Its Employee Benefits
Disney is also modifying other elements of its employee benefits package. The company reportedly plans to consolidate some well-being programs while doubling the number of counseling sessions available through its Employee Assistance Program. It also intends to introduce an employee stock-purchase plan later in 2027, pending approval.
Disney told employees 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.”
Additional Layoffs Are Coming
The healthcare change comes as Disney pursues a broader effort to reduce costs and reshape its workforce. According to Deadline, the company is offering voluntary early retirement packages to eligible U.S.-based executives working in Disney Entertainment, ESPN, and its corporate divisions.
Promo Photo Courtesy of Disney Parks; Princess Leia and Han Solo at Disneyland Galaxy’s Edge
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Disney announced the elimination of approximately 1,000 positions in April before conducting another round of layoffs in July. CEO Josh D’Amaro and CFO Hugh Johnston have since indicated that additional reductions are coming as the company attempts to “meaningfully reduce costs” while prioritizing investments in content, technology, and experiences.
New leadership often brings significant changes, and Disney’s latest cost-cutting measures make clear that employees will not be insulated from them. For more than 1,000 spouses and domestic partners, the company’s effort to reduce expenses will mean losing their existing medical coverage—and potentially paying considerably more for something worse.
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