More U.S. companies have said they will cover the cost for employees to travel out of state for abortions, when necessary, after the U.S. Supreme Court's June 24 ruling in Dobbs v. Jackson Women's Health Organization reversed the Roe v. Wade decision and allowed states to restrict or end access to abortions.

Employers that are considering offering abortion-related benefits, such as out-of-state travel to a jurisdiction where abortion laws are more accommodating, should keep in mind compliance and liability considerations, benefits advisors point out.

Employers that operate in multiple states will also need to navigate a patchwork of different rules affecting abortion coverage, depending on where covered employees and dependents live, work and receive health care.

Fully Insured vs. Self-Insured Plans

Self-insured employers may have more leeway to provide abortion assistance in states with restrictive laws, depending on how courts interpret the interplay between the federal Employee Retirement Income Security Act (ERISA) and state statutes, benefits advisors have noted.

The Affordable Care Act (ACA) requires fully insured health plans in the small group market, if not grandfathered, to cover essential health benefits as determined by their states. In most states, small-group insurance applies to businesses with 50 or fewer full-time or equivalent employees.

"Self-insured employers have the ability to design what's covered and not covered in their plan," said Ben Conley, a...

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