The Affordable Care Act continues to prove that it actually has made health care more affordable. Not for everyone, but for a hell of a lot of people including women of child-bearing age. A new study from Health Affairs isolates one benefit—contraceptive coverage which went into effect in August 2012—and
finds huge savings.
An analysis published Tuesday in Health Affairs shows that women have saved $1.4 billion on birth control pills, while out-of-pocket spending on intrauterine devices has fallen 68 percent. Annual, out-of-pocket savings were $248 for IUDs and $255 annually for oral contraceptives.
The Affordable Care Act requires insurers to cover all birth control methods approved by the Food and Drug Administration without any form of cost-sharing, like copayments or deductibles.
The Health Affairs report found that in the six months leading up to the birth control mandate, pill users spent an average of $32.74 per prescription, with that number falling to $20.37. Average spending on IUDs fell from $262.38 to $84.30.
So why didn't it fall to zero? Because the requirement was phased into health plans, so the change didn't happen immediately for everyone. Also, the law grandfathered in many plans that have not yet had to comply. Furthermore, some insurers
found a loophole that they have used to refuse to cover some types of birth control. The administration has
clamped down on that, and in May of this year informed insurers that they have to offer one form of all 18 of the methods approved by the FDA, and have to cover a specific product or option if it is recommended by the doctor with no additional cost.
This means that more women will rack up more savings now. At least as long as the Supreme Court doesn't apply a blanket exemption to all employers because they think birth control is icky.