Rowe Weed’s demise forces companies to grapple with health care plans, employee privacy and more

Roe v. The challenges posed by the end of Wade are only the beginning for Corporate America.

By reversing the abortion precedent On Friday, the US Supreme Court set out a series of new difficulties for companies that will now have to navigate a country divided between states that will allow the process and others that will outlaw it.

One of those issues for companies is deciding whether — and how — to provide abortions to the millions of employees who live in states where the procedures are no longer legal.

“Every major organization has health coverage,” said Maurice Schweitzer, a professor in the Wharton School of Business at the University of Pennsylvania. “The question would be, what is covered? Is out-of-state travel for abortion covered if you are working in a state that prohibits abortion?”

Some of the country’s largest employers, including Apple, CVS HealthAnd Disney, reiterated that companies cover travel to states that allow abortions. others, such as dick sporting goodsRan to update their medical benefits. many Prominent business leaders went a step further and condemned the end of 50 years of federal abortion rights.

Still several others declined to comment or said they were still reviewing the plans.

The Supreme Court’s ruling will have an impact on the corporate world that goes far beyond the health benefits and impact of employers, where companies locate headquarters and offices, who they donate to lawmakers and political action committees, and how they serve employees, customers and investors. How to communicate with

Over the years, some companies have chosen to take a stand on polarizing issues, including the killing of George Floyd, a black man, by a police officer and Florida’s HB 1557 law, called the “Don’t Say Gay” bill. Is.

The Supreme Court’s decision is likely to increase the hand of companies and it will be difficult for business leaders to remain silent, Schweitzer said, With those decisions, he said, companies can risk lawsuits, run after politicians and seek feedback from customers or employees.

“It’s going to be an additional challenge for the authorities,” he said.

For companies deciding to cover abortion care in other states, it will raise new questions including how to reimburse travel expenses and protect employee privacy.

some companies like Netflix, Microsoft and parent company of Google Alphabet There are already health care policies in place that include abortion and travel benefits, but others are catching up.

JPMorgan Chase told employees in a memo that it would be Expand its medical benefits to include travel coverage starting from July. Under Armour Said it would add a travel benefit to its medical plans. Dick’s CEO Lauren Hobart shared on linkedin Employees, their spouses and dependents will receive up to $4,000 in travel reimbursement if they live in an area that restricts access.

Warner Bros. Discovery It also contacted its employees after the announcement of the decision on Friday.

“We recognize that the issue of abortion can evoke a variety of emotions and reactions that are different for each of us based on our experiences and beliefs,” Adria Alpert Romm, Chief People and Culture Officer, told staff. written in a memorandum Received by CNBC, “We are here to support you.”

Romm said the company is expanding its health care benefits to include the expenses of employees and their covered families who need to access a range of medical procedures, including abortion, family planning and care for reproductive health. travel is required.

heroine And other companies added travel reimbursement earlier this year as state governments in the Sunbelt passed laws that closed abortion clinics or limited access by other means.

But companies’ responses will vary over time and may include removing abortion coverage from health plans, or offering indirect assistance such as paid time off or contributions to a health savings account that can be used to cover travel-related expenses. to receive care in another state.

According to a survey of more than 1,000 human resource professionals for the Society for Human Resource Management, nearly 30% of organizations said they would increase support within an employee assistance program for fertility care in a post-Roe world. The survey was conducted between May 24 and June 7.

Nearly a third were cited as the top resource provided to support fertility care, and 14% said they would incorporate the topic of reproductive rights into their diversity, equity and inclusion programs.

Nearly a quarter of organizations said that offering a health savings account to cover travel for fertility care in another state would enhance their ability to compete for talent.

Companies have long used their economic power to influence political policy. In 2019, when Georgia legislators called for a ban on nearly all abortions, Hollywood used production boycott threats To clarify his opinion about politics in the state.

Yet, in the wake of the pandemic, studios have been Slow to react to new laws which traditionally they could oppose. Production shutdowns are no longer a luxury Hollywood can afford, especially as it seeks to keep up with demand for new material.,

Disney is coming out of a recent battle over a hot-button cultural issue. The company publicly protested Florida’s so-called “Don’t Say Gay” bill, after its employees demanded the company take action. Florida Gov. Ron DeSantis Replacing Florida’s Republican-led Legislature Company’s special district canceled in the state, which is home to Walt Disney World and other resorts.

Friday in a memorandum to employeesDisney said it is “committed to removing barriers and providing broader access to quality and affordable care” for all employees. Disney, which already has travel benefits, allows its employees to seek medical care for cancer treatment, transplant, rare disease treatment and family planning, including decisions related to pregnancy, at their current location. unable to care.

As individual states decide whether to uphold or block abortion rights, legislatures may face backlash from companies and influential business leaders. This may include informing decisions about boycotts, loss of political funding or where to place headquarters, distribution centers or new facilities.

Billionaire and business mogul Richard Branson wrote in a statement, “The overturning of Rowe v Wade is a disastrous decision by the US Supreme Court.” “It will not reduce abortion, it will make them unsafe. Reproductive rights are human rights. We all must stand for election.”

Branson was among companies and business leaders who criticized the Supreme Court ruling.

Jeremy Stoppelman, co-founder and CEO of Yelp, said: “This decision puts women’s health at risk, deprives them of their human rights, and negates the progress we’ve made toward gender equality in workplaces.” threatened.” “Business leaders should take steps to support the health and safety of their employees, by speaking out against the wave of abortion restrictions that will begin as a result of this decision, and calling on Congress to codify Roe into law.”

Investors in publicly held companies can have a major impact on how responses to new decisions are prepared.

on one walmart At a shareholders meeting earlier this month, an investor called on the nation’s largest private employer to publish a report on the potential risks and costs to the company of state policies that restrict reproductive health care, and the company’s has a plan to mitigate those risks. The proposal, which is non-binding, was opposed by the retailer and did not find support from a majority of shareholders.

Similar proposals may come up at shareholder meetings of other companies in the near future. Analysts can also interrogate executives during the upcoming earnings calls.

Walmart is located in Arkansas, a state that There’s already a law to ban books, The company declined to comment on Friday when asked whether it would cover travel expenses in states that allow abortions. It already pays for visits to hospitals and medical centers for other types of medical procedures, such as spine surgery and some heart procedures.

Wharton’s Schweitzer said employees and customers expect more from companies and want to engage or spend money with people who reflect their values.

The corporate world has taken the lead in some cases, with companies turning Juneteenth into a company holiday before it becomes a federal one. some companies, such as Unilever-Owned by Ben & Jerry’s and CEO, eg Levi Strauss & Co.Kay Chip Berg is known for having his say.

“There is a growing tendency for officers to be more involved, more engaged in social and political issues,” he said. “It’s going to increase the trend where we’re going to see many executives speaking out, many executives taking the lead on this issue and it’s going to normalize the idea that executives are part of the political process.”