AP via Newsbusters:
Health insurance companies in California may not refuse to cover the cost of abortions, state insurance officials have ruled in a reversal of policy stemming from the decision by two Catholic universities to drop elective abortions from their employee health plans.
Although the federal Affordable Care Act does not compel employers to provide workers with health insurance that includes abortion coverage, the director of California’s Department of Managed Health Care said in a letter to seven insurance companies on Friday that the state Constitution and a 1975 state law prohibits them from selling group plans that exclude the procedure. The law in question requires such plans to encompass all “medically necessary” care.
“Abortion is a basic health care service,” department director Michelle Rouillard wrote in the letter. “All health plans must treat maternity services and legal abortion neutrally.”
Jesuit-run Santa Clara University and Loyola Marymount University notified employees last fall that they planned to stop paying for elective abortions, but said faculty and staff members could pay for supplemental coverage that would be provided through a third party. The two schools said their insurers, Anthem Blue Cross and Kaiser Permanente, had cleared the move with the state.
University employees who objected to the decision and abortion-rights groups lobbied the women’ caucus of the California Legislature, which in turn asked Gov. Jerry Brown to clarify and reverse the health care department’s determination.
Life Legal Defense Foundation, Alliance Defending Freedom, and the Cardinal Newman Society sent a letter to state officials reminding them that this mandate is illegal under federal law (the Weldon Amendment.)