In a startling revelation from a recent employer health benefits survey conducted by KFF, about 25% of major U.S. employers either heavily restrict or outright deny coverage for legal abortions under their workers' health plans. This emphasizes the disparity in abortion care access across the nation, particularly after the Supreme Court's landmark decision to overturn the constitutional right to abortion last year in the Dobbs v. Jackson Women's Health Organization case.
As the accessibility of abortion increasingly becomes contingent on one's workplace and the specifics of their health insurance, many workers find themselves shouldering out-of-pocket expenses for abortion care. In 2021, out-of-pocket costs for medication abortions and abortion procedures during the first trimester stood at $568 and $625, respectively. This price rises to $775 for procedures in the second trimester, as per a report from the University of California-San Francisco's Advancing New Standards in Reproductive Health.
The Cost of Abortion for Workers
The 2023 KFF annual survey shed light on the practices of large employers, defined as those employing over 200 individuals. Findings showed that 10% of these employers fail to cover legal abortion care in their predominant job-based health plans. Another 18% only extends coverage in extreme circumstances, such as when pregnancies result from rape or incest or when the pregnancy endangers the individual's life or health.
Matthew Rae, Associate Director at KFF, who played a pivotal role in the survey, expressed his surprise at the findings, particularly the proportion of employers not offering any abortion coverage. This comes against a backdrop where 14 states, primarily in the South and Midwest, have set near-complete abortion bans. Yet, abortion remains legal in 24 states and the District of Columbia.
Rae emphasized the complexity large companies face, especially those with a workforce dispersed across states with differing abortion policies. The challenge extends to providing health benefits to dependents who might reside in different regions.
While a third of major companies confirmed they cover legal abortions under most or all circumstances, it was observed that the most sizable firms, those boasting over 5,000 employees, were more forthcoming in providing such benefits.
However, the landscape remains murky, as 40% of the surveyed companies were uncertain about their abortion coverage. This might be due to rapidly evolving employer policies, especially in the aftermath of the Dobbs decision. Interestingly, most companies' stances on abortion remained consistent post-Dobbs ruling.
Corporate Responses to Tightening Abortion Laws
The KFF report, which collates data from over 2,100 companies on health benefits and associated worker costs, also highlighted a significant 7% spike in annual premiums for family coverage, now averaging $23,968. Employees are expected to contribute an average of $6,575.
In response to the tightening grip of state abortion laws, several corporate giants like Amazon, Starbucks, Disney, Meta, and JPMorgan Chase have pledged to cover employees' abortion-related travel expenses. However, the KFF survey indicated that only a meager portion of large employers are on board with this initiative, with 7% confirming or planning to offer such financial aid.
According to the Brigid Alliance, travel costs for abortions have now surged past $2,300, with individuals traveling an average of 1,300 miles for procedures since the Dobbs ruling in 2023.
Interestingly, a collaborative study by Indeed, the Institute of Labor Economics, and universities like the University of Southern California and the University of Maryland highlighted the implications of offering abortion-related benefits. Companies announcing such travel benefits witnessed an 8% surge in job posting clicks.
Conversely, there was a notable dip in job satisfaction, particularly in senior management ratings, spotlighting the potential rewards and challenges businesses face in navigating these politically charged waters.
