PHOENIX—The Federal District Court in Phoenix today granted final approval of a nationwide class-action settlement requiring that the Albertsons grocery and pharmacy chain provide all its women employees across the country with coverage for prescription contraception as part of their employee health benefit plans. The far-reaching agreement was negotiated by attorneys at Planned Parenthood Federation of America (PPFA) and Planned Parenthood of Western Washington; the law firm of Goldstein, Demchak, Baller, Borgen & Dardarian; local attorneys in Arizona, and the Phoenix office of the Equal Employment Opportunity Commission (EEOC).

“Prescription contraception is basic health care for women,” PPFA President Gloria Feldt said. “We congratulate Albertsons for implementing a policy that addresses the health needs of its women employees, not just coverage for the drugs and services used by men.”

Albertsons, which employs approximately 200,000 people nationwide, is one of many employers that have agreed to provide prescription contraception coverage since a federal court in Washington State ruled in 2001 that excluding such coverage violates Title VII of the 1964 Civil Rights Act and the Pregnancy Discrimination Act of 1978. That case, known as Erickson v. Bartell Drug Co., held that “the exclusion of women-only benefits from a generally comprehensive prescription plan is sex discrimination under Title VII.” The Bartell Drug ruling closely followed a previous determination by the EEOC that exclusion of prescription contraceptives from a generally comprehensive insurance policy constitutes sex discrimination under Title VII.

Albertsons’ agreement to provide comprehensive health coverage for prescription birth control comes at a time of increased scrutiny for employer health plans generally. Albertsons and other unionized grocers, such as Kroger and Safeway, are still dealing with the impact of a 70,000 worker walkout/lockout that began last October because of unresolved disputes over health care coverage. The major competitor of these grocery chains, Wal-Mart Stores, Inc., is criticized for providing far less health coverage to its workers, who are not unionized.

Recent polls indicate overwhelming public support for both contraceptive use and contraception insurance coverage. In addition, the medical and social science literature show that the availability of affordable and effective contraceptives helps to prevent a litany of physical, emotional, economic, and social consequences. More information regarding prescription contraception and women’s health can be found at www.covermypills.org, a Web site maintained by Planned Parenthood.

The Albertsons settlement resolved complaints that six of its women employees had brought to the EEOC regarding the denial of coverage for prescription contraception in their otherwise comprehensive prescription drug and benefit plans. Under the class settlement, Albertsons has agreed to provide coverage for all employees, their spouses and their non-spouse dependents for FDA-approved prescription contraceptive drugs and devices, and all related medical services, according to the same general terms and conditions that it covers other preventive prescriptions, devices and medical services. The covered FDA-approved prescription birth control methods range from birth control pills and diaphragms, to Depo-Provera® injections and other less commonly used devices.

Albertsons has also agreed to provide reimbursement to certain past and present women employees who incurred out-of-pocket expenses for prescription birth control while covered under an Albertsons health plan for more than 90 days, with at least a day of that coverage (as well as out-of-pocket expenses) occurring after December 20, 2000. Depending upon the length of employment with Albertsons, the employee will be eligible for vouchers of $50, $100 or $150.

The claims for reimbursement are being administered by Rosenthal & Company, an independent claims administrator in Novato, California. Past and present employees, for whom Albertsons had a current address, were automatically sent a “claim form,” which they could use to seek reimbursement. To date, 1,483 women have filed claim forms. Past and present Albertsons employees who desire to file a claim but who do not have a claim form may still contact Rosenthal & Company toll-free at 1-800-207-0343, to request a claim form and further information. All claim forms must be postmarked by March 5, 2004, to be eligible for reimbursement.