Abortion benefits: Companies have a simple and legal way to help their workers living in anti-abortion states – expand paid time off
Employers looking for ways to support their workers seeking abortions in states where it’s now illegal or soon will be don’t have it easy.
From an employer’s standpoint, abortion is considered a type of health care benefit – and the rules that apply to that benefit are shifting rapidly from state to state. Abortion is also a political flashpoint guaranteed to produce controversy. And the problem is not going away anytime soon.
Some companies are vowing to cover the cost of traveling out of state to get the procedure where it is still legal. Others are emphasizing that their insurance plans explicitly cover abortions.
As a legal scholar specializing in employment law, I believe there’s also a third option that may not be as generous but is less likely to run into legal problems – and will help more workers, especially those with low incomes.
Covering medical costs directly
As of 2020, the median cost of an abortion was US$500 to $600 in the first trimester, and around $900 in the second trimester.
Although most women seeking an abortion pay for the procedure out of pocket, some companies cover abortion in their health plans. In a recent statement, for example, Uber touted that its employee health plan includes abortion costs. And employers in a handful of states such as California and New York are required to include abortion in any health plan they offer.
However, other states outlaw health coverage for abortion under state insurance laws. Even before the recent Supreme Court abortion decision, 11 states including North Dakota and Texas had already prohibited or limited private insurance from paying for the procedure.
Companies that fund their own health benefit plan may be in a better position to avoid restrictions in state insurance laws. But switching to a self-funded plan is unaffordable for most small or medium-sized businesses. And self-funding may not protect companies if states decide to criminalize abortion.
In other words, companies do not have a lot of room to maneuver when it comes to covering abortions in states that are determined to prohibit the procedure.
