Governor Gavin Newsom recently signed Senate Bill 729, a groundbreaking piece of legislation that will mandate expanded coverage for fertility treatments, including in vitro fertilization (IVF), for millions of Californians. This law is set to go into effect in July 2025 and requires a large group of health plans to cover fertility services. This legislation, while offering help to families struggling with infertility, also raises significant questions about the financial impact on healthcare premiums and the state’s already strained budget.

In California, IVF treatments can range from $15,000 to $40,000 per cycle, depending on various factors such as medications, additional procedures, and the number of cycles required. 

Under SB 729, these substantial costs will now be shared among insurance holders, potentially leading to increased premiums for everyone. Despite the law’s positive intentions, which aim to help families access treatments previously out of reach, policymakers have said little about the exact financial implications for individuals already facing rising healthcare costs.

Adding to the financial burden is a separate piece of legislation signed by Governor Newsom that raises the minimum wage for healthcare workers to $25 an hour, estimated to cost the state $2.7 billion annually. This pay increases comes with substantial costs that will likely be passed on to consumers through higher insurance premiums and increased Medi-Cal reimbursement rates.

So, how much could all this cost? 

The state’s projected $27.6 billion budget deficit for 2024-25 further complicates the issue. Governor Newsom has already expressed concerns that the minimum wage increase for healthcare workers could exacerbate this deficit, which led to the delay of its implementation. 

As the state implements these laws, Californians are left wondering how these new mandates affect healthcare costs.