Biden, Harris propose free OTC contraception under ACA

The Biden-Harris administration on Monday unveiled a proposal that would expand the Affordable Care Act’s coverage of contraceptives to include over-the-counter contraception with no cost sharing.

The ACA already mandates that most private health plans cover prescription contraceptives without cost sharing.

Therapies that would be covered under the proposed rule include OTC medications such as emergency contraception and Perrigo’s (NYSE:PRGO) Opill, which was the first OTC contraceptive to win U.S. FDA approval and launched back in March.

The new rule would also impact coverage of prescription contraceptives as health plans would be required to cover every FDA-approved contraceptive drug or drug-led combination product without cost sharing except for plans that also cover a therapeutic equivalent without cost sharing.

Teva Pharmaceutical Industries (TEVA) and Bayer (OTCPK:BAYZF)(OTCPK:BAYRY) are major players in the branded oral contraceptive space.

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