- The Biden administration seeks to return to the Obama administration policy of allowing separate payments to be made together, undermining the clear text of the law.
- President Joe Biden and the House of Representatives’ fiscal year 2022 budget proposes to eliminate the Hyde Amendment.
- For consumers with sincere moral or religious objections to abortion, the proposed rule is particularly harmful.
The public comment period closed on Wednesday for a rule proposed by the Biden administration that would reverse a Trump administration rule regarding program integrity for certain health insurance plans that cover elective abortions.
At issue is Section 1303 of the Patient Protection and Affordable Care Act, also known as Obamacare. This section of the law requires that insurers collect a separate payment for certain abortion coverage in qualified health plans approved to be sold on exchanges and keep those separate payments in separate accounts used only to pay for elective abortion services.
Under the Obama administration, this requirement was not enforced, and the Trump administration rule sought to correct this problem. Now, the Biden administration seeks to return to the Obama administration policy of allowing separate payments to be made together, undermining the clear text of the law.
The Heritage Foundation has long articulated the many ways in which Obamacare entangles taxpayer dollars with elective abortions. Heritage experts have also highlighted how Section 1303 has, in practice, amounted to an accounting gimmick due to noncompliance and lack of enforcement. (The Daily Signal is the news and commentary platform of The Heritage Foundation.)
In response to the Biden administration’s proposed rule, Heritage submitted a public comment.
An abridged and lightly edited version of that comment follows:
Background on Section 1303
In Section 1303 of Obamacare, Congress addressed a number of issues involving coverage and funding of abortion arising from other provisions of the legislation that imposed new benefit requirements on private insurance plans and provided new, income-related federal subsidies for purchasing such plans.
States have the authority to permit or prohibit the inclusion of abortion coverage in qualified health plans offered through their exchange. Qualified health plans may, but are not required to, cover abortions. For plans that do include abortions, federal funds, including tax credits and advance payment reductions, can’t be used for abortions that are restricted under the Hyde Amendment (hereafter referred to as “elective” abortion services).
The Hyde Amendment is language incorporated into the annual appropriations bill for the departments of Labor, Health and Human Services, and Education, and related agencies.
Since 1976, the amendment has prohibited funds appropriated through the departments to be spent on abortions and for health benefits coverage of elective abortion. Current Hyde Amendment language includes exceptions for rape, incest, or when the life of the mother is in danger.
Notably, President Joe Biden and the House of Representatives’ fiscal year 2022 budget proposes to eliminate the Hyde Amendment.
In addition to restrictions on taxpayer funds for elective abortions, Section 1303 establishes additional rules for plans that cover elective abortions.
The issuer of a plan is to collect a separate payment for elective abortion coverage and the rest of the premium. The separate abortion payments are to be put in a separate allocation account used exclusively to pay for elective abortions.
In addition to collecting a separate payment for elective abortions and segregating funds for such services, qualified health plans are supposed to provide notice at the time of enrollment that a plan includes abortion coverage.
In summary, federal law under Obamacare’s accounting and notice requirements regarding elective abortion coverage is unambiguous. The law requires separate—that is, two distinct—payments for elective abortion services and other services covered under a policy. The law requires that a separate allocation account be used exclusively to pay for elective abortions. And the law requires that consumers have transparency regarding coverage for elective abortions.
