Contraceptive Equity

Arizona law requires health insurance plans that cover prescription drugs to provide equitable coverage for contraception.

What is required?  If a health insurance plan provides coverage for prescription drugs or outpatient health care services, it must provide coverage for any Food and Drug Administration-approved prescription contraceptive drugs or devices and outpatient contraceptive services.

To which insurance plans does the law apply?  All health care service organization contracts, contracts between hospital, medical, dental, and optometric service corporations and their subscribers, and certain disability and accountable health plans issued or renewed on or after December 31, 2002 that provide coverage for prescription drugs or outpatient health care services.

Does the law provide additional protections for women?  Yes.  Such plans may not impose deductibles, coinsurance, copayments, or other cost containment measures for contraceptive drugs that are greater than those imposed for other drugs on the same level.

Does the law contain a refusal clause, allowing certain employers and/or insurers to refuse to provide or pay for contraceptive coverage?  Yes.

To whom does the refusal clause apply?  Religious employers whose religious tenets prohibit use of prescription contraception.

What does the refusal clause allow?  A religious employer may require issuers of its health insurance plans to exclude coverage for contraception.

Is this refusal clause overbroad, jeopardizing insurance coverage for contraception for women?  No.  The law appropriately defines the term "religious employer" as a nonprofit organization that primarily employs and serves persons who share the religious tenets of the entity. This definition appropriately covers religious entities but not broad-based entities that operate in the public sphere.

Must the refusal be in writing?  Yes. The religious employer must submit a written affidavit to the insurer.

Does the law require the refusing entity to notify the persons affected?  Yes.  An employer exercising a refusal clause must provide written notice to prospective employees that the employer refuses to cover all FDA-approved prescription contraceptives for religious reasons.

Are there circumstances under which a refusal clause may not be exercised?  Yes.  A refusal clause may not be used to exclude coverage for prescription contraceptive methods ordered for reasons other than to prevent unintended pregnancy.

Does the law provide a mechanism for women to obtain contraceptive coverage if their employer exercises a refusal clause?  No.

Ariz. Rev. Stat. Ann. §§ 20-1057.08, -826, -1402, -1404, -2329 (Enacted 2002).