New Maryland Law Unlocks $25 Million to Pay for Abortion

The law allows state health department to tap into a surcharge levied on health insurance plans sold through the Obamacare exchanges.

Maryland Gov. Wes Moore (C) speaks during a press conference about rebuilding the Francis Scott Key Bridge at the U.S. Capitol on April 9, 2024. Madalina Vasiliu/The Epoch Times

Maryland will soon begin using millions of dollars collected through a surcharge on insurance plans sold under the Affordable Care Act, also known as Obamacare, to pay for abortion.

Gov. Wes Moore on May 13 signed into law a bill authorizing the state to tap into a $1-per-month surcharge levied on every insurance policy sold through the ACA marketplace. These funds are reserved exclusively for abortion services, in line with federal regulations that bar most public dollars from being used to cover such procedures.

The surcharge, which totals $25 million, has existed for years but has remained inaccessible to the state until now. Under the new law, the Maryland Department of Health will be able to use the money to reimburse abortion providers, particularly for abortions for uninsured or underinsured women.

The new law also states that the funds must be used solely for abortions and not for anything else, such as clinic infrastructure, equipment, or security. That language addresses concerns that surfaced in 2024 when a similar bill proposed using the insurance surcharge dollars to help boost security for abortion clinics, prompting conflicting legal opinions from the attorney general’s office and ultimately stalling the measure.

Since the U.S. Supreme Court in 2022 overturned a seminal precedent that largely legalized abortion nationally and returned the power to decide on the issue to the states, Maryland has seen a surge in demand for abortion services, drawing patients from neighboring states where new restrictions have taken effect.

Maryland solidified its role as a regional haven in 2023 by passing a law that shields abortion providers from prosecution in other states. It cemented that stance in 2024 when voters approved a ballot measure to make abortion a state constitutional right.

“The lieutenant governor and I were very clear, from day one, that Maryland will always be a safe haven for abortion access,” Moore said during a bill-signing ceremony at the State House.

The law, which will take effect on July 1, has drawn criticism from pro-life advocates.

Laura Bogley, executive director of Maryland Right to Life, took issue with the state’s priorities, arguing that the policy benefits the abortion industry at the expense of women in need.

“Poor women do not need free abortions. They need public support programs that will empower them to choose life for their children,” she said in testimony to the Maryland Assembly. “The State of Maryland should redirect taxpayer funds away from the abortion business to lifesaving alternatives to abortion, including legitimate family planning services, prenatal care providers, and affordable adoption options.”

Bogley said that the funding mechanism, which draws from insurance premiums, essentially forces all policyholders in Maryland’s ACA marketplace to subsidize abortion, regardless of their personal or religious beliefs.

“This not only increases health care costs for all, it also infringes on our First Amendment freedoms, including rights of conscience and the free exercise of religion,” she said.

Maryland is one of a dozen states that mandate that private insurance plans sold through the ACA marketplace include abortion coverage, according to the health policy research group KFF. The other states are California, Colorado, Illinois, Maine, Massachusetts, Minnesota, New Jersey, New York, Oregon, Vermont, and Washington.