Following the significant 2022 U.S. Supreme Court decision in Dobbs v. Jackson, which overturned Roe v. Wade, a recent KFF analysis revealed that a small fraction of large firms offering health insurance have altered their abortion coverage. The survey, conducted from January to July 2023 with 2,100 employers with at least 200 workers, showed that 8% of these companies changed their abortion coverage in response to the ruling, with 3% reducing it and 12% enhancing it.
Moreover, the analysis found that only 7% of large firms providing health benefits are offering or planning to offer financial assistance for travel expenses to employees needing to access abortion services out of state. This is amidst a backdrop of uncertainty, with 27% of respondents unsure about their company’s policies or plans regarding such provisions.
The survey provided insight into the specifics of abortion coverage among large firms: 10% do not cover abortions under any conditions in their most significant plan, 18% cover abortions in limited situations, and 32% offer coverage for abortions under most or all circumstances. However, 40% of the respondents were unaware of their plans’ coverage specifics regarding abortions, possibly due to the omission of explicit information in plan documents unless abortion is explicitly excluded.
State-level legislation also plays a role, with 10 states enacting laws that prohibit abortion coverage in state-regulated private plans—albeit most with exceptions—and another 10 states requiring such coverage. These regulations generally do not apply to self-funded employer health plans governed by the Employee Retirement Income Security Act of 1974, leaving 67% of workers at large firms enrolled in plans exempt from state insurance laws.
The response from the business community to the Dobbs v. Jackson decision also extends to employment trends. Companies that publicly updated their benefits or expressed support for reproductive healthcare saw an 8% increase in clicks on their job postings, as per an analysis by Indeed and Glassdoor. This suggests a correlation between such announcements and attractiveness to job seekers, particularly among organizations with a higher proportion of female or Democratic-supporting employees. This landscape indicates a nuanced corporate response to reproductive healthcare benefits in the wake of significant legal changes, with a varied approach to abortion coverage and related benefits among large firms.
