California SB 729: What Employers Need to Know About Mandatory Infertility Coverage 

As we approach mid-year renewals, it’s important to remind California employers of a significant change impacting large group health plans. Beginning with renewals on or after January 1, 2026, California Senate Bill (SB) 729 mandates that large group fully insured health plans provide expanded infertility and in vitro fertilization (IVF) benefits. This legislation, signed by Governor Newsom in September 2024, aims to ensure equitable access to reproductive healthcare for all employees. 

A Quick Recap of SB 729 

What’s Changing? 

SB 729 requires that large group health insurance policies in California must: 

• Cover the diagnosis and treatment of infertility, including: 
  • Up to three completed oocyte (egg) retrievals 
  • Unlimited embryo transfers 
• Apply these benefits without imposing limitations that are more restrictive than those applied to other medical services.
• Provide clear, transparent communication to policyholders regarding covered infertility benefits. 

This law applies to new business and renewals on or after January 1, 2026, and while Governor Newsom has expressed interest in potentially delaying implementation to January 1, 2026, carriers are moving forward with compliance for the current timeline.

Key Considerations for Employers 

1.Budgeting for the Additional Rating Impact of this Modification

Carriers anticipate an additional average 2% rate increase on top of the standard medical trend—typically around 12%—due to the expanded infertility coverage mandate. While exact impacts will vary, it’s important for employers to be aware of this added rating pressure ahead of renewal time, especially during strategic budget planning. 

2.Communicating with Employees 

Just like any other plan change, employers should determine the best strategy for informing employees about this expanded benefit. Transparency and education are key—employees need to understand not only what is covered but how to access the benefit.

Final Thoughts

If your group is fully insured and renewing on or after January 1, 2026, now is the time to: 

• Budget for a potential rate adjustment 
• Review carrier communications and EOCs 
• Plan your employee communication strategy 

As always, M&G is here to guide you through these updates and ensure a smooth renewal experience.