AUL immediately responded to the anti-life provisions in the new federal health care law by releasing our new model legislation – the Federal Abortion-Mandate Opt-Out Act. The new health care reform law requires individual States to operate and maintain “health insurance exchanges.” Health insurance plans offering abortion coverage are allowed to participate in a state’s exchange and to receive federal subsidies unless the State legislature affirmatively opts-out of offering these plans. Individuals whose income falls between 150 and 400% of the federal poverty level receive tax credits to apply towards health insurance plans in the new exchanges. If one chooses a plan that covers abortion, his or her tax credit cannot be used to directly pay for abortions; however, the tax credit subsidizes the insurance plan which covers abortions.
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