Among the factors suspected for the lagging improvements in infant health in recent period are increasing obesity and diabetes prevalence among women of childbearing age. This paper investigates the impact of mandated insurance coverage for diabetes on adverse pregnancy outcomes. Among infants born to educated women, who have high rates of coverage through private insurance affected by mandates, diabetes mandates are associated with a reduction in premature births and a decrease in low birth weight prevalence. These gains are concentrated among older women and are larger for African-Americans. There is a weaker effect on the prevalence of high birth weight (>4000 grams), potentially due to the deleterious effects of an increased probability of weight gain in excess of 35 pounds among diabetic women in mandates states.