The Senate bill allows any state to bar the use of federal subsidies for insurance plans that cover abortion and requires insurers in other states to divide subsidy money into separate accounts so that only dollars from private premiums would be used to pay for abortions.
The Catholic Health Association which represents more than 600 Catholic hospitals across the country said that "it was encouraged" that such a compromise can achieve the objective of no federal funding for abortions. An umbrella group for nuns followed its lead.
However, the United States Conference of Bishops called the proposed compromise "morally unacceptable.
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