California Governor Gavin Newsom Tuesday signed the Abortion Accessibility Act, SB 245, to ensure cost is not a barrier to accessing care by eliminating out-of-pocket costs for abortion services.
California requires health insurance companies to cover abortions, but cost-sharing requirements, such as co-pays and deductibles, add expenses to abortions. The legislation prohibits health plans and insurers from imposing cost-sharing requirements and utilization management practices for abortion and abortion-related services.
“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,” Governor Newsom stated.
The elimination of these fees will slightly increase monthly premiums for patients and their employers. The California Health Benefits Review Program found that the savings from eliminating the fees will be greater than the increased premiums.
Newsom’s signing of the law authored by Senator Lena A. Gonzalez makes California becomes the fourth state to ban cost-sharing fees.
Newsom signed the law amid the Supreme Court’s debate on overturning Roe v. Wade, which banned states from barring abortion. Also, Texas passed a law last year allowing private citizens to sue anyone who performs, aids, or abets an abortion after any fetal cardiac activity is detected, which is usually at about six weeks.
“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,” said First Partner Jennifer Siebel Newsom. “California will continue to lead by example and ensure all women and pregnant people have autonomy over their bodies and the ability to control their own destinies.”