Employer-Paid Abortion Travel Coverage Triggers Tax Consequences

Employers looking to provide safe harbor by covering workers’ out-of-state travel costs for abortion services must also navigate tax and benefits laws and consider employees’ potential tax burden, attorneys said.

Employers are preparing for an expected US Supreme Court decision invalidating Roe v. Wade, the 1973 decision that legalized abortion, by providing benefits to employees.

Six states, including California and New York, require abortion coverage in private health insurance plans, according to the Guttmacher Institute. Eleven states have laws that go the opposite direction, restricting insurance coverage of abortion in all private insurance plans written in the state, ...