STUPAK ABORTION COVERAGE BAN – CALIFORNIA IMPACT

STUPAK ABORTION COVERAGE BAN – CALIFORNIA IMPACT

The Stupak Amendment Moves Far Beyond Federal Policy by Restricting the Private Funding of Private Decisions

On November 7, 2009, the House passed a last-minute anti-choice amendment to health reform offered by Rep. Bart Stupak (D, MI-01) that would effectively ban private health plan coverage of abortion for millions of women in the United States even if they are paying the full cost of coverage.  The Stupak ban violates the most fundamental principle of health care reform—as articulated by President Obama—that "no one will lose benefits they currently have."  

Existing federal policy on abortion funding does not restrict private dollars from paying for abortion coverage -- the Stupak amendment does.

• Under the Hyde Amendment, in place since 1977, federal funds cannot be used to pay for abortion under the Medicaid program, except in cases of rape, incest or risk to the life of the woman.  However, state funds may be used to provide abortion coverage beyond the Hyde limitations to Medicaid patients, and 23 states do so, including California.  California is constitutionally mandated to cover abortion services within the Medi-Cal program.[1] 
• Federal law has never before restricted the use of a person's private funds for abortion coverage.

The Stupak ban restricts an individual's use of private funds to pay for abortion coverage. 

• For the first time in federal law, the Stupak ban restricts what a person can do with private dollars in the private health insurance marketplace. 
• The Stupak ban says that a health plan receiving any federal funds under the Act cannot cover abortion care, even if the coverage is paid for through the premiums paid by individuals to health plans.   
• Ultimately, the Stupak amendment will prohibit any coverage of abortion in the new "exchange" established by health reform.
  • Example 1:  If a person pays 95% of a premium out of her own pocket and receives an affordability credit from the federal government for 5%, she is barred from purchasing a plan with abortion coverage.  In this way, the Stupak ban doesn't just restrict federal funds, it restricts the use of private funds. 
  • Example 2:  Employees of a small business that chooses to provide health care coverage for its employees through the exchange would not have access to abortion coverage even if they pay 100% of the premium if even one person who is covered by the same plan is receiving a federal subsidy. 

The Stupak Amendment impacts millions of middle class California women.

• The Stupak ban impacts millions of middle class California women who use the exchange because they will be prohibited from purchasing health coverage that includes abortion services.
• It is estimated that more than twelve-million Californians are employed by small businesses.[2]  The exchange has been designed to assist small businesses' ability to provide health coverage for their employees and significant participation is anticipated.  These employees and their families will be directly affected by the Stupak ban.
• The exchange is also available to individuals who are unable to afford current health insurance premiums and whose income falls below 400% of the federal poverty level, which translates to $88,000 annual income for a family of four. [3]  Clearly, middle-income Californians.

The Stupak ban will have an industry-wide impact, potentially leading to the elimination of abortion coverage for health plans outside of the exchange, including the existing employer-based market.

• A recent George Washington University study concludes that the Stupak amendment "will have an industry-wide effect, eliminating coverage of medically indicated abortions over time for all women, not only those whose coverage is derived through a health insurance exchange. As a result, Stupak can be expected to move the industry away from current norms of coverage for medically indicated abortions."[4]

The Stupak ban takes health benefits away from women—violating the core principle of health care reform that no one will lose benefits they currently have. 

• The Stupak ban is an unprecedented restriction on women's health access to abortion coverage.  According to the Congressional Budget Office, within the first 6 years, 30 million individuals will purchase coverage through the exchange, and it is only expected to grow.  Increasingly, millions of women will see their private health insurance coverage erode if this dangerous policy is accepted.

Members of Congress Must Oppose the Stupak Ban in the Final Health Care Reform Bill.

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