Real information on "contraceptive pills" and health insurance

Jon Hammond from econographia reseached the topic of contraceptive pills on the cost aspects involved with health insurance at my request. Instead of losing real data in the comments sections on previous posts, I am posting his findings here:

Here are some of the empirical findings dealing with the insurance costs and cost-savings of coverage for contraceptive services. The direct costs of providing contraception as part of a health insurance plan are very low and do not add more than approximately 0.5% to the premium costs per adult enrollee (see Daroch, J. E.). In 1998, Buck Consultants estimated that the direct cost of providing contraceptive benefits averaged $21 per enrollee per year (see Daroch, J. E.). The most recent actuarial analysis, completed by the Actuarial Research Corporation in July 2011, using data from 2010, estimated a cost of about $26 per year per enrolled female (see Callahan, C.)

However, with respect to the effect on insurance premiums when medical costs associated with unintended pregnancies are taken into account … including costs of prenatal care, pregnancy complications, and deliveries … the net effect on premiums is close to zero (see Washington Business Group on Health, Sept 2000). And when time away from work and lost productivity are considered (factors salient to employers) . . the total costs to employers are reduced.

PriceWaterhouseCoopers issued a report in 2007 which found that providing contraceptive services yields a net cost-savings (see Campbell, K.P.).

The cost-savings impact of contraceptive services has also been demonstrated via the Medicaid Section 1115 Family Planning Demonstrations conducted in six states in the 1990s. Please refer to Tthe February 2012 U.S. DHHS brief on this subject .. it contains both the content and full citations noted in abbreviated form above .. see here: