CA Eliminates Out Of Pocket Costs For Abortions

CALIFORNIA — Gov. Gavin Newsom signed a new law on Tuesday that would do away with out of pocket costs for those on private insurance plans.

The new bill comes as Democratic leaders gear up for a potential U.S. Supreme Court ruling that could overturn Roe v. Wade, the 1973 ruling that banned states from outlawing abortion.

"As states across the country attempt to move us backwards by restricting fundamental reproductive rights, California continues to protect and advance reproductive freedom for all,” Newsom said on Tuesday. “With this legislation, we’ll help ensure equitable, affordable access to abortion services so that out-of-pocket costs don’t stand in the way of receiving care.”

SB 245, signed on Tuesday, prohibits health plans and insurers from charging a co-pay, deductible, or other cost-sharing requirement for abortion or abortion-related services.

California joins Illinois, New York and Oregon in eliminating fees attached to abortion services.

California is one of six states that require health insurance plans to cover abortion services. Insurers often impose large co-pays and deductibles that can add an average of $543 to the cost of a medication abortion and $887 to the cost of a procedural abortion, according to an analysis by the California Health Benefits Review Program. Newsom's SB 245 would eliminate those costs.

While the law signed in on Tuesday eliminates co-pays and deductibles, it will raise monthly premiums for patients and their employees. However, the savings from eliminating the fees will be greater than the increased premiums, according to an analysis by the California Health Benefits Review Program.

“In the face of nationwide attacks on reproductive rights, California has taken action to improve access to reproductive care by removing financial barriers to this essential health care,” First Partner Jennifer Siebel Newsom said in a statement.

If the new conservative majority on the U.S. Supreme Court overturns Roe V. Wade, at least 26 states are likely to either ban abortion outright or severely limit access, according to the Guttmacher Institute, a research and policy organization that supports abortion rights.

This could force women to travel to the Golden State or other states to get an abortion. The state is already beginning to prepare for that scenario.

California has 14 proposals aimed at expanding and protecting access to abortion in the nation's most populous state. The bills were inspired by a report from the Future of Abortion Council, a group Newsom convened last year to advise him about how to respond if Roe v. Wade is overturned.

“We're looking at 26 states that will introduce some sort of ban and restriction on abortion, so you have the other half of the country that will need to prepare for how we take care of those patients,” said Jodi Hicks, CEO and President of Planned Parenthood Affiliates of California. “We're all imagining and trying to prepare correctly for what that impact will be.”

The Associated Press contributes to this report.