Insurers not totally sold on contraceptives coverage

Most coverage of the contraceptives fight (mine included) has focused on Congress and the presidential campaign. But to understand how this battle will play out, there’s one other party worth keeping an eye on: the health insurance companies. They are, after all, the ones expected to foot the bill if a faith-based employer objects to covering contraceptives.

The White House has said this is a good deal for health insurance companies: Providing birth control is cost-effective, preventing more expensive pregnancies down the line. But health insurers don’t seem totally sold: About 40 percent expect it to increase the cost of their drug benefits, according to a study out this morning from consulting firm Reimbursement Intelligence, which surveyed 15 pharmacy directors at health insurance plans. In total, their companies provide coverage for more than 100 million Americans. About 20 percent expect the provision to be cost-neutral, while a third still don’t know what the impact will be. Academic research tends to find that covering contraceptives either saves money, or at least doesn’t increase insurance costs.

Whether insurance companies ultimately protest the rule remains to be seen. So far, they’ve laid low. They may well continue to do so: Even if they do see the new mandate as burdensome or costly, it’s unclear whether it’s worth wading into an incredibly heated political battle. What health plans seem most worried about is the precedent that this could set, with the federal government becoming increasingly involved in dictating what they cover and how much they charge consumers for it.