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Bans premium tax credits, advance credits, CSRs, and the small employer credit for plans covering most abortions, allows unsubsidized abortion‑only plans, and mandates prominent abortion‑coverage disclosures.
Official title: To prohibit taxpayer funded abortions.
Introduced January 22, 2025 by Christopher Henry Smith · Last progress January 22, 2025
The bill increases consumer transparency and lets taxpayers avoid subsidizing abortion coverage but does so by restricting federally funded abortion access and shifting costs and administrative burdens onto low-income people, women seeking care, insurers, and small employers.
Consumers will get clearer disclosure at enrollment about whether a plan covers abortion and any separate surcharge, making it easier to comparison-shop for plans.
Women can still buy separate abortion-only coverage on their own (without federal subsidies), preserving a non-subsidized pathway to obtain abortion coverage.
Low-income individuals who object to subsidized abortion will no longer have their federal tax credits used to purchase plans that include abortion coverage, reducing forced subsidy of services they oppose.
Low-income people (especially low-income women) will face higher out-of-pocket costs or higher net premiums because subsidized plans may exclude abortion, require separate unsubsidized policies, or impose surcharges, reducing affordable access to abortion services.
Women who currently rely on federally funded coverage may lose access to abortion care paid for by federal programs, narrowing reproductive healthcare options.
Women enrolled in subsidized plans that drop abortion coverage will need to pay out-of-pocket or purchase separate unsubsidized coverage to obtain abortions, creating a direct health and financial burden.
Based on analysis of 4 sections of legislative text.
Prohibits federal premium tax credits, advance credits, cost‑sharing reductions, and the small employer health insurance expense credit from being used for health plans that include coverage for most abortions, while allowing separate, unsubsidized abortion‑only plans to be offered or purchased. It also requires clearer enrollment‑time disclosures about whether a plan covers two specified classes of abortion services and any surcharge attributable to abortion coverage. The changes amend Internal Revenue Code provisions and parts of the Affordable Care Act, apply to plan years beginning after December 31, 2025, and tighten Exchange disclosure rules with a required effective date for materials more than 30 days after enactment.