California takes crucial step in protecting reproductive rights by closing insurance gap with new grants to cover uninsured
News: 2022 Press Release
SACRAMENTO, Calif. — As the nation sees a dramatic rollback of reproductive rights, California continues to lead the way in protecting the rights of pregnant people with Governor Gavin Newsom’s signing of Assembly Bill 2134, jointly authored by Assemblymembers Dr. Akilah Weber and Cristina Garcia, and co-sponsored by Insurance Commissioner Ricardo Lara, Planned Parenthood Affiliates of California, NARAL Pro-Choice of California, Access Reproductive Justice, Essential Access Health, and the National Health Law Program.
AB 2134, known as the “California Abortion and Reproductive Equity (CARE) Act”, will establish the Reproductive Health Equity Program to provide grants to providers who offer reproductive and sexual health care free of cost to patients with low incomes and those who lack health care coverage for reproductive health services, including consumers who come to California from other states that have decreased access to abortion care services. The grants afforded under AB 2134 are in addition to the $40 million appropriated in the enacted 2022-23 State Budget to help cover these services.
“We must continue to protect Californians’ status as a reproductive freedom state. I commend Governor Newsom for signing the CARE Act, which will help close the insurance gap for people when they are denied coverage or do not qualify for other health care programs,” said Insurance Commissioner Ricardo Lara. “I applaud Assemblymembers Weber and Garcia and the strong coalition of co-sponsors for pushing this important health care access measure. California continues to stand as a beacon for those seeking fair and affordable treatment.”
“I applaud Governor Newsom for signing the CARE Act and allocating funding to remove cost as a barrier to abortion and contraceptive care in the State of California and affirm our commitment to reproductive rights,” said Assemblymember Dr. Akilah Weber. “As a practicing OBGYN, I’m too familiar with the difficult decision to terminate a pregnancy and the disproportionate affect the overturning of Roe v. Wade will have on low income and women of color. I’m proud of my legislative colleagues and sponsors for supporting this bill.”
Most state-regulated health insurance and health care service plans in California are required to cover abortion services. However, a gap in coverage exists for people with plans that may exclude these benefits. In addition, many Californians without employer-based coverage earn too much to qualify for Medi-Cal, but also are not eligible for coverage under Covered California.
To meet the needs of patients in California, reproductive health providers already provide uncompensated care where they receive no payment from the patient, an insurer, or plan. This new law will provide financial support to safety net providers who offer reproductive and sexual health care services, including abortion, to people in California and for consumers that come to California from other states who are unable to pay out-of-pocket for services.
AB 2134 will be effective on January 1, 2023.
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Media note:
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
