There will be no federal funding of abortions or abolition of conscience laws.
From the transcript of Obama's presentation:
THE PRESIDENT: ... There are also those who claim that our reform efforts would insure illegal immigrants. This, too, is false. The reforms -- the reforms I'm proposing would not apply to those who are here illegally.
AUDIENCE MEMBER: You lie! (Boos.)
THE PRESIDENT: It's not true. And one more misunderstanding I want to clear up -- under our plan, no federal dollars will be used to fund abortions, and federal conscience laws will remain in place.
Convoluted struggle over the issue will continue, as pro-life blogger Jill Stanek demonstrated today with her argument that Obama is merely attempting to create a myth. That view isn't taking hold. Two big Catholic health care organizations were persuaded by Obama's speech, as was the U.S. Conference of Catholic Bishops.