As payers grapple with a patchwork of laws on abortion, the number of employers offering travel benefits for abortion services is expected to grow significantly over the next several years, a new survey shows.
WTW polled 305 employers and found that more than one-third (35%) currently offer travel and lodging benefits for both elective and medically necessary abortions, and another 16% plan to add such benefits in the coming year. In addition, 21% are considering adding travel benefits for abortion services in 2023.
The survey also found that just under half (44%) of those who currently offer travel benefits for abortion plan to strengthen those benefits in the wake of the Supreme Court's Dobbs ruling earlier this year.
“As a new landscape of state laws emerges, many employers are determining whether and how to support employees who seek abortion services,” said Regina Ihrke, senior director and health, equity and well-being leader at WTW, in a statement. “As always, their primary objective is to serve the needs of their benefit plan enrollees, no matter in which state they reside.”
Most employers, including both self-funded and fully insured firms, offer coverage for abortion. Ninety-three percent of the self-insured employers expect to cover elective abortions in states where they are legal, as do 82% of self-funded employers.
Most plans place some limits on abortion travel benefits, mostly commonly in the form of annual caps. Of the employers who offer such benefits, 43% have an annual limit, and an additional 22% expect to have a cap in place in the future.
In addition, 28% have a lifetime limit and 20% have a limit per occurrence, according to the survey. About two-thirds of employers said they will limit costs to Internal Revenue Service tax-free amounts.
“The Dobbs decision raises questions for employers for which there are no immediate answers given the ongoing changes in state laws,” said Courtney Stubblefield, senior director of health and benefits at WTW, 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.”