The Maryland Senate passed a bill that would allow funds collected from a surcharge on insurance plans sold under the Affordable Care Act, also known as Obamacare, to be used for abortion services.
The bill targets the $1 surcharge levied on health insurance plans sold through the state’s public health exchange, a component of the ACA.
The surcharge has existed for some time, but Maryland has not yet had access to the funds accumulated. This bill will allow the state to use these funds, which have ballooned to $25 million, exclusively for abortion services. This would include providing grants to abortion providers, which would be administered by the Maryland Department of Health.
A similar measure was introduced in the state House of Delegates. The two measures would need to be reconciled before they are sent to Democratic Gov. Wes Moore’s desk for his signature.
Since the United States Supreme Court overturned Roe v. Wade in 2022, Maryland has seen a surge in demand for abortion services as people from across the region seek care in the state. Maryland is one of the southernmost states where abortion access is unrestricted.
To address this increased demand, lawmakers are working to ensure that Maryland’s abortion providers can continue to operate without the financial strain that has plagued them in recent years.
The bill ensures that the funds will not be used for other purposes, such as supporting the function of abortion clinics by funding security, equipment, or facility maintenance. The focus addresses concerns raised last year when a similar bill that faced legal challenges was introduced. Lawmakers had received conflicting opinions from the state attorney general about whether the state could legally use insurance company funds to support abortion clinics.
The bill has received support from the state comptroller’s and the state attorney general’s offices.
TEXAS CHARGES MIDWIFE UNDER STATE ABORTION BAN
The bill comes on the heels of Maryland voters enshrining abortion rights in the state constitution. More than 75% of voters approved the measure.
If Moore signs the bill, it will go into effect on July 1.