This week brought another blow for reproductive rights in the U.S. An Alabama Supreme Court handed down a ruling that not only can frozen embryos be classified as “children,” but destroying them can lead to charges of wrongful death. This decision has prompted the University of Alabama at Birmingham, the state’s largest healthcare provider, to cease all in vitro fertilization (IVF) treatments. For state residents seeking IVF treatments or similar medical procedures, this development promises to have significant repercussions. And Seeking Alpha reports that the impacts of this fertility ruling could quickly spread to other states.
News of the Alabama State Court’s ruling has sent shockwaves throughout the healthcare industry. Progyny (NASDAQ:PGNY), a leader in the fertility benefits space, has rebounded slightly today after slipping yesterday. Meanwhile, Accolade (NASDAQ:ACCD), a healthcare benefits provider that has partnered with Carrot Fertility, is still in the red. This suggests that the road ahead for companies connected to fertility treatments will be difficult.
What to Know About the Alabama State Court Fertility Ruling
It may not seem overly significant that one state has made a decision like this. However, it is important to see the bigger picture when it comes to the Alabama State Court ruling. While it may be true that all politics is local, what starts at the local level can easily spread to the national stage, particularly if other states follow Alabama’s lead. However, the ruling has garnered significant criticism so far, including from President Joe Biden. In a statement from the White House, Biden attributed it to the overturning of Roe vs. Wade, stating:
“Today, in 2024 in America, women are being turned away from emergency rooms and forced to travel hundreds of miles for health care, while doctors fear prosecution for providing an abortion. And now, a court in Alabama put access to some fertility treatments at risk for families who are desperately trying to get pregnant. The disregard for women’s ability to make these decisions for themselves and their families is outrageous and unacceptable.
This suggests that the federal government is committed to ensuring that these types of attacks on reproductive rights do not become normalized. So far, Republicans nationwide have had mixed responses to the ruling. However, other conservative state courts may be inclined to pursue action similar to Alabama’s. This means that certain parts of the healthcare sector are likely in for a difficult road ahead as states move to make fertility treatment more difficult. If Donald Trump advances toward victory in November 2024, it will likely go from bad to worse.
That said, recent polls show that Biden maintains a lead over Trump as the U.S. moves toward its next presidential election. As my colleague Shrey Dua reports, the stock market’s performance also suggests a Biden victory is likely. While the current president remains focused on reproductive rights, companies like Progony and Accolade will continue to face an uncertain economic landscape for as long as these state-level attacks continue.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
