The Medicaid program was created in 1965 when Congress added Title XIX to the Social Security Act to provide federal financial assistance to states that choose to reimburse certain costs of medical treatment for needy persons. Participation in the program is voluntary, but once a state elects to participate, it must comply with federal requirements including coverage of five general categories of medical services for the categorically needy. From the program's inception, federal funding was available for medically necessary abortions.
In September 1976, Congress enacted the first version of the Hyde Amendment as part of the annual appropriations bill for the Department of Health, Education, and Welfare. This prohibited the use of federal funds to pay for abortions except when the life of the mother would be endangered if the fetus were carried to term. Subsequent versions applicable to fiscal years 1977 through 1980 varied in scope. The 1980 version added exceptions for rape and incest reported promptly to law enforcement or a public health service. Earlier versions included or excluded an exception for severe and long-lasting physical health damage to the mother.
On September 30, 1976, the day the initial Hyde Amendment was enacted, Cora McRae, a New York Medicaid recipient in the first trimester of a pregnancy she wished to terminate, the New York City Health and Hospitals Corporation, which operates hospitals providing abortion services, and other plaintiffs filed suit in the United States District Court for the Eastern District of New York against the Secretary of Health, Education, and Welfare seeking to enjoin enforcement of the funding restriction. The District Court certified the case as a class action on behalf of all pregnant or potentially pregnant women in New York eligible for Medicaid who decide to have an abortion within the first twenty-four weeks of pregnancy and all authorized providers of abortion services to such women. It entered a preliminary injunction.
After this Court decided Beal v. Doe and Maher v. Roe, the District Court vacated the injunction and remanded for reconsideration. On remand, additional plaintiffs intervened, including four individual Medicaid recipients seeking medically necessary abortions, several physicians who perform abortions for Medicaid recipients, and the Women's Division of the Board of Global Ministries of the United Methodist Church along with two of its officers. An amended complaint challenged multiple versions of the Hyde Amendment on statutory and constitutional grounds.
Following a lengthy trial that produced a record exceeding five thousand pages of transcript and more than four hundred exhibits, the District Court rejected the plaintiffs' statutory claim but held that the Hyde Amendment violated the equal protection component of the Fifth Amendment and the Free Exercise Clause of the First Amendment. The court recertified the case as a nationwide class action on behalf of all pregnant and potentially pregnant women eligible for Medicaid who wish to have medically necessary abortions and all authorized providers of such abortions. It then ordered the Secretary to cease giving effect to the Hyde Amendment and to continue authorizing federal matching funds for medically necessary abortions. The Secretary appealed directly to this Court, which noted probable jurisdiction.
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