More U.S. employers to offer travel benefits for abortion services in wake of Dobbs decision, WTW survey finds

Most employers with fully and self-insured plans will cover elective abortions in states where permitted by law

ARLINGTON, Va., Aug. 11, 2022 (GLOBE NEWSWIRE) — 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, according to a new survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.

The survey of 305 U.S. employers found over a third of respondents (35%) now offer travel and lodging benefits for elective and medically necessary abortions. Another 16% of employers plan to offer abortion travel benefits in 2023, while 21% are considering it.

The survey also found nearly half (44%) of employers that offer or plan to offer travel benefits for abortion services or for any other medical procedures (e.g., transplant, bariatric and musculoskeletal surgeries, gender affirmation, fertility services) due to the court ruling have enhanced those benefits. Another 46% are planning or considering enhancing these benefits next year or in the future. Further, 86% 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. Among companies that offer or plan to offer travel benefits for abortion services, 43% have an annual limit and 22% expect to place a limit in the future. Among companies that offer or plan to offer travel benefits for abortions, 28% have a lifetime limit and 20% have a limit per occurrence. Almost two-thirds of employers (64%) will limit expenses to IRS tax-free amounts.

“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, Health, Equity & Wellbeing leader, WTW. “As always, their primary objective is to serve the needs of their benefit plan enrollees, no matter in which state they reside.”

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The vast majority of employers with fully and self-insured health plans cover abortion procedures. Among employers with fully insured plans, 93% 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% expect to offer coverage for elective abortions by 2023 in states where abortions are permitted by law.

“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, Health & Benefits, 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.”

About the survey

A total of 305 U.S. employers participated in the 2022 Post Dobbs Decision Survey, which was conducted in August 2022. Respondents employ 4 million workers. Over half of respondents (55%) have self-insured health plans only, while 9% have fully insured health plans only. The remaining respondents have both plans.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

Media contact:

Ed Emerman: +1 609 240 2766
eemerman@eaglepr.com