California’s new law, SB 729, marks a milestone in reproductive healthcare by requiring large group health insurance plans to offer coverage for fertility treatments, including in vitro fertilization (IVF). Signed into law in September 2024, the legislation takes effect for plans issued or renewed on or after July 1, 2025.
This legislation aims to remove barriers to access for individuals and couples struggling with infertility, offering hope and support where it is most needed. Under SB 729, large employers— typically those with 101 or more employees— must include coverage for diagnosis and treatment of infertility, fertility preservation, and IVF. The law caps the number of IVF retrievals at three but allows unlimited embryo transfers, providing ample opportunity for successful pregnancies.
Another critical aspect of the law is the alignment of cost-sharing. The legislation stipulates that IVF benefits should be covered at the same level as other medical benefits, ensuring that patients do not face excessive out-of-pocket expenses for this specialized treatment. Additionally, the law removes previous exclusions for IVF treatment, clearly defining infertility as a medical condition eligible for coverage.
While large group plans are mandated to provide these benefits, small group plans (fewer than 101 employees) are given the flexibility to include IVF coverage but are not required by law to do so. This distinction is essential for employers to understand as they evaluate their plans and consider employee needs.
The impact on employers is multifaceted. Implementing this coverage may initially lead to increased plan costs, but it also reflects a broader approach to supporting reproductive health and equity in the workplace. Employers should communicate these changes clearly to employees, highlighting new benefits and the assistance options available.
For employees, particularly those facing infertility challenges, this law provides critical financial relief and broader access to advanced reproductive options. Removing financial and coverage barriers can reduce stress and improve outcomes for countless families.
In sum, SB 729 represents a significant commitment to reproductive health equity in California. Employers should review their plans, prepare to incorporate these benefits, and ensure transparent communication to maximize the positive effects for their workforce.