From Mother Jones Magazine: http://motherjones.com/mojo/2010/12/end-abortion-insurance
By Nick Baumann
Remember the nasty fight over federal funding of abortion that nearly derailed the health care package? It’s not over.
The issue is sure to flare up again early in the next Congress in the form of a bill floated by Rep. Chris Smith (R-N.J.), the ”No Taxpayer Funding for Abortion Act.” The proposal—which has the support of 185 cosponsors and incoming House Speaker John Boehner—has a stated aim of making the Hyde Amendment (a rule that has to be renewed every year that prohibits federal funding of abortions through Medicaid) into permanent, government-wide law. But abortion-rights advocates fear Smith’s bill could have even broader consequences. They view it as a Trojan horse for the elimination of private insurance coverage for abortion. If they’re right, tens of millions of Americans could see their health insurers stop covering abortions.
Susan Cohen, the director of governmental affairs for the pro-abortion-rights Guttmacher Foundation, argued in a policy brief this fall that “the Smith bill would go…into uncharted territory” by preventing employers from taking a tax deduction for offering an insurance plan that covered abortion. (Like most other benefits, health insurance costs are generally tax-deductible for employers.) Analysts at NARAL Pro-Choice America and Planned Parenthood, the leading abortion rights advocacy groups, agree. According to abortion-rights advocates, Smith’s bill would create a huge incentive for employers to only offer health insurance that doesn’t cover abortion. Insurers would respond to what their customers wanted, and the percentage of health plans offering abortion coverage—currently 86 percent—would undoubtedly plummet.
Continue reading at: http://motherjones.com/mojo/2010/12/end-abortion-insurance