Trump administration to scrutinize Obamacare plans for abortion funding

The rule is likely to provoke a clash with states such as California and Oregon, which obligate all insurers to cover abortions. It also is likely to receive backlash from Democrats, who refused to support a bill to shore up Obamacare earlier this year because it contained language that would have restricted the funding from going toward paying for medical plans that provide abortions.

Obamacare includes weaker anti-abortion language than most healthcare laws, rules that are not satisfactory to social conservatives. Anti-abortion groups have urged the Trump administration to take action on the issue. Most pieces of legislation involving spending include the Hyde Amendment, which prohibits federal dollars from going toward most abortions. Obamacare, however, is restricted from paying for abortions through an executive order signed by former President Barack Obama, a concession made in order to win over anti-abortion Democrats to the law.

The proposal released Wednesday also suggested that the agency undertake a more careful review of customer data to make sure that people are appropriately receiving federal subsidies. Insurers have said that people who should be on Medicaid or Medicare, which are both government programs, are being improperly enrolled in the private health insurance marketplace, known as the exchange, instead. CMS also noted that certain customers may be enrolled in more than one program.

“This administration is committed to making sure taxpayer dollars are spent appropriately,” said CMS Administrator Seema Verma said in a statement. “Maintaining a high level of program integrity on the exchange is essential, including ensuring that premium tax credits only go to those who are eligible for them.”