Policy Memo

AAF Explainer: How Obamacare Subsidies Fund Abortion

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Published

December 17, 2025

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For more information, please contact AAF General Counsel Marc Wheat at mwheat@advancingamericanfreedom.com How Obamacare Subsidies Pay for Abortions While the legislative text of the Affordable Care Act (ACA) says that an insurance plan “shall not use

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For more information, please contact AAF General Counsel

Marc Wheat at mwheat@advancingamericanfreedom.com

How Obamacare Subsidies Pay for Abortions

While the legislative text of the Affordable Care Act (ACA) says that an insurance plan “shall not use any amount attributable” to the federal tax credit to pay for abortion services, the legislation allows subsidies to fund plans that cover abortions. As written today, D.C. and 25 states allow ACA plans to cover abortions (and 12 mandate it). This state loophole makes the existing abortion funding restrictions toothless. How the ACA Abortion Loophole Works Simply put, taxpayer dollars are provided to insurance companies to subsidize plans that are then used to provide abortion services. Under the current system, insurance companies act as middlemen who collect premium payments from the government and pay for abortion services under that coverage plan.

1. ACA prohibits federal tax credits from directly funding abortion services. 2. States pass laws that allow or require ACA insurance plans to pay for

abortions. 3. Federal tax credits are provided to insurance companies to pay premiums. 4. Insurance companies then pay for abortions through insurance plans that

were funded with federal dollars through ACA premium tax credits. 5. Because federal funds are used to pay the premium – not for the service

directly – taxpayer dollars can subsidize abortions through this Democrat loophole. Without specific language banning all ACA insurance plans from covering abortions, pro-life Republicans should never allow the extension of these insurance subsidies. States that Allow or Mandate Abortion Coverage for ACA Insurance Under Section 1303 of the ACA, “A State may elect to prohibit abortion coverage in qualified health plans offered through an Exchange.” In total, 25 states plus D.C. have no limitations on the funding going to provide abortions. Of those 25, 12 states actually force all ACA plans to guarantee abortion coverage (see underlined).

1. Alaska 2. California 3. Colorado 4. Connecticut 5. Delaware 6. D.C. 7. Hawaii 8. Illinois 9. Iowa

10. Maine 11. Maryland 12. Massachusetts 13. Michigan 14. Minnesota 15. Nevada 16. New Hampshire 17. New Jersey 18. New Mexico

19. New York 20. Oregon 21. Rhode Island 22. Vermont 23. Virginia 24. Washington 25. West Virginia 26. Wyoming