Employers who drop contraceptive coverage due to the Supreme Court decision will have higher costs
Today's Managing Health Care Costs Number is 3.74
This is a terrible decision - allowing employers to impose their religious beliefs on their employees. It's anti-woman and anti-choice, and it is highly likely to increase abortions. But this is about managing health care costs.
Some employers might ask "How much does birth control cost, and what could I save if I stopped providing this coverage?"
This is the wrong question - since employers which stop covering contraception will face additional maternity costs. In fact, contraception and childhood vaccination are the two services that clearly lower total medical costs. Researchers found that each public dollar spent on birth control saved $3.74. So we should not project a decrease in spending if contraceptive coverage is eliminated.
We have seen a dramatic decrease in teen pregnancy in the US, as well as a decrease in the rate of abortions. It's likely that the availability of long acting reversible contraception (LARC - such as intrauterine devices and progesterone implants) has helped this trend. Coverage of LARC for teens has been especially effective, but the unit cost is high enough that many will not have access to such contraception absent employer sponsored coverage.
I'm hopeful that many employers will continue to pay for contraception. This benefit is highly valued by their employees, and they should reject the Trump administration's ongoing efforts to take essential health care benefits away from Americans at this critical time.
