More employers will offer travel benefits for abortion services, survey reveals

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

The survey, which polled 305 U.S. employers, also found nearly half (44%) of employers that offer or plan to offer travel benefits for abortion services or for any other medical procedures (such as transplant, bariatric, and musculoskeletal surgeries, gender affirmation, and fertility services) have enhanced those benefits in the wake of the Supreme Court’s ruling. Another 46% are planning or considering enhancing these benefits next year or in the future. What’s more, 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, according to the survey. 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.

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% 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.

Related: After Dobbs: HSAs, FSAs, HRAs and abortion coverage

“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 & Wellbeing leader at WTW, says 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.”

“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 & 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.”