Sponsors (51)
The bill prevents federal subsidies and some employer credits from subsidizing abortion coverage—reducing federal exposure and increasing transparency and choice for purchasers—but in doing so it raises costs and reduces access to abortion care for low-income people and creates administrative complexity for insurers and exchanges.
Taxpayers, federal payers, and employers: The bill stops federal premium tax credits, cost-sharing reductions, and certain small-employer credits from being used to subsidize abortion coverage, reducing federal subsidy exposure for abortion services.
Consumers and employers: The bill preserves the option to buy separate abortion-only plans and requires prominent enrollment-time and marketing disclosures about whether plans cover abortion and any surcharge, improving consumer transparency and allowing a distinct purchase option.
Low-income pregnant people and others who rely on federal subsidies: Prohibiting federal subsidies for abortion coverage will reduce access to abortion services by increasing out-of-pocket costs and causing some to forgo care.
Low-income marketplace enrollees: People in health insurance marketplaces could lose premium tax credits and CSRs for plans that cover abortion, making premiums and cost-sharing substantially more expensive and reducing affordability of coverage.
People seeking abortion who would use separate abortion-only plans: Because those separate plans cannot be purchased with federal subsidies or employer credits, they are likely to be unaffordable for many, increasing out-of-pocket costs for care.
Based on analysis of 4 sections of legislative text.
Bars federal premium tax credits, advance credits, CSRs, and the small employer health credit from applying to plans that cover abortion; allows separate abortion‑only policies but bars credits for them and tightens enrollment disclosures.
Official title: Prohibit taxpayer funded abortions.
Introduced January 22, 2025 by Roger F. Wicker · Last progress January 22, 2025
Prohibits use of certain federal subsidies and tax credits for health plans that cover abortion care (with limited statutory exceptions). It allows people and employers to buy separate abortion-only policies, but bars federal premium tax credits, advance payment of credits, cost-sharing reductions, and the small employer health insurance tax credit from paying for plans or premiums that include abortion coverage. The bill also requires clearer disclosure at enrollment about whether a plan covers abortion and any surcharge tied to disallowed abortion coverage, and it updates multi-State plan rules to exclude plans covering abortion where federal funds are barred. The tax and subsidy changes take effect for taxable years ending after December 31, 2025, and apply to plan years beginning after that date; the disclosure rule applies to materials published more than 30 days after enactment. The bill adds a new chapter to Title 1, U.S. Code, as a placeholder prohibiting federally funded abortions but does not, in the text provided, spell out the substantive definitions or penalties within that added chapter.