More Employers Will Offer Travel Benefits for Abortion Services

The number of U.S. employers offering travel benefits for abortion services is expected to double over the next few years in the wake of the Supreme Court’s Dobbs v. Jackson Women’s Health Organization decision.

A new survey by global advisory, brokering, and solutions company WTW reveals that more than a third of respondents (35 percent) currently offer travel and lodging benefits for elective and medically necessary abortions, while another 16 percent of employers plan to do so in 2023. Another 21 percent are considering adding such benefits.

The survey, which polled 305 U.S. employers, also found that nearly half (44 percent) of employers which offer, or plan to offer, travel benefits for abortion services—or for any other medical procedures, including transplant, bariatric, and musculoskeletal surgeries; gender affirmation; or fertility services—have enhanced those benefits in the wake of the Supreme Court’s ruling. Another 46 percent are planning to enhance, or considering enhancing, these benefits in the future. What’s more, 86 percent of employers align their travel and lodging benefits for abortion services with travel and lodging benefits for other procedures.

Most plans place limits on abortion travel benefits, with annual caps being the most common approach, according to the survey. Among companies that offer, or plan to offer, travel benefits for abortion services, 43 percent have an annual limit, and 22 percent expect to place a limit in the future. Among companies that offer or plan to offer travel benefits for abortions, 28 percent have a lifetime limit, and 20 percent have a limit per occurrence. Almost two-thirds of employers (64 percent) will limit expenses to IRS tax-free amounts.

The survey also revealed that the vast majority of employers with fully and self-insured health plans cover abortion procedures. Among employers with fully insured plans, 93 percent of companies expect to offer coverage for elective abortions by 2023 in states where abortion is permitted by law. Among employers that self-insure their benefit plans, 82 percent expect to offer coverage for elective abortions by 2023 in states where abortions are permitted by law.

“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 and a health, equity, and well-being leader at WTW, says. “As always, their primary objective is to serve the needs of their benefit plan enrollees, no matter in which state they reside.”

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

From: BenefitsPRO