Sponsors (110)
Disallows ACA premium tax credits, advance payments, CSRs, and the small employer credit for plans that cover most abortions, allows separate unsubsidized abortion-only coverage, and requires clearer disclosure.
Official title: To prohibit taxpayer funded abortions.
Introduced January 22, 2025 by Christopher Henry Smith · Last progress January 22, 2025
The bill lets consumers avoid subsidizing abortion and increases transparency while preserving an unsubsidized purchase route, but it reduces federally funded abortion coverage and raises costs and administrative burdens that disproportionately affect low-income women, some employers, and insurers.
Low-income consumers who object to subsidizing abortion will no longer have their federal premium tax credits used to buy plans that include abortion coverage, allowing them to avoid subsidizing those services.
Women can still purchase separate, abortion-only coverage outside of federal subsidies, preserving a pathway to access abortion services for those who can afford unsubsidized plans.
All consumers will get clearer disclosure at enrollment about whether a plan covers abortion and any surcharge for those services, improving plan comparison and informed choice.
Women enrolled in subsidized plans — especially low-income women — may lose abortion coverage funded by federal programs, reducing access to reproductive healthcare and forcing some to pay out-of-pocket or forego care.
Low-income individuals could face higher overall costs because insurers may drop abortion from subsidized plans, add separate surcharges, or prompt people to buy unsubsidized coverage, increasing premiums and out-of-pocket expenses.
Small employers lose the small employer health insurance credit for contributions toward plans that include abortion coverage, raising after-tax costs for small-business owners who want to offer such plans.
Based on analysis of 4 sections of legislative text.
Prohibits use of federal premium tax credits, advance payments, cost-sharing reductions, and the small employer health insurance expense credit for health plans that include coverage for most abortions, while allowing separate, unsubsidized abortion-only coverage if purchased without federal subsidy or employer credit. Requires clearer enrollment-time disclosures about whether plans cover two specified classes of abortion services and any surcharge attributable to abortion coverage. The tax and exchange changes apply to plan years beginning after December 31, 2025 (and taxable years ending after that date for the tax provisions); the disclosure rule takes effect for materials published more than 30 days after enactment. One added chapter heading in Title 1 signals a ban on federally funded abortions but contains no operative statutory text in the provided language.