On back of Dobbs, employers add travel benefits for abortion care

In wake of the Supreme Court’s decision to overturn the right to access to abortion care in Dobbs v. Jackson Women’s Health Organization, more employers are adding travel benefits enabling employees to receive abortion care in other states.

A survey from WTW revealed travel and lodging benefits are increasingly common as employee benefits. Out of 305 U.S. employers surveyed, 35% said they now offer travel and lodging benefits for elective and medically necessary abortions. Another 16% said they will add the benefits in 2023, and 21% said they are considering it. 

The court ruling, which upturned nearly 50 years of precedence in the U.S., was the catalyst for 44% of companies offering or planing to offer travel benefits for abortion services––or for any other medical procedures (e.g., transplant, bariatric and musculoskeletal surgeries, gender affirmation, fertility services)––to enhance those benefits. Nearly half (46%) said they are planning or considering enhancing those benefits in the next year or further in the future. Nearly all (86%) said the benefits for abortion services align with travel and benefits for other procedures.

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The survey underscores the enormous impact of the Dobbs decision, as well as the tight labor market and competition environment to retract and retain workers with benefits and other compensation incentives. Numerous states immediately implemented restrictions and abortion bans, forcing patients seeking abortion care to travel to states where abortion access remains accessible.

“As a new landscape of state laws emerges, many employers are determining whether and how to support employees who seek abortion services,” Regina Ihrke, senior director, Health, Equity & Wellbeing leader, WTW, said in a press release. “As always, their primary objective is to serve the needs of their benefit plan enrollees, no matter in which state they reside."

Many of the employer plans that offer travel and lodging benefits for abortion services come with an annual limit (43%) and expect to have a limit in the future (22%). Other limits include a lifetime limit (28% of plans) and limit per occurrence (20%).

Nearly all (93%) of companies in the survey expect to cover elective abortion by 2023 in states where it is permitted by law. Another 82% of employers that self-insure their benefit plans expect to offer coverage for elective abortions by 2023.

“The Dobbs decision raises questions for employers for which there are no immediate answers given the ongoing changes in state laws,” Courtney Stubblefield, senior director, Health & Benefits, WTW, said in a statement. “Employers will need to stay aware of developments in order to align benefit programs with organization goals and to best meet employees’ benefit needs.”

Amy Baxter

Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."

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