Smart Benefits: Despite Reform Mandate, Birth Control Coverage Ruled Optional

Amy Gallagher, GoLocalProv Business/Health Expert

Smart Benefits: Despite Reform Mandate, Birth Control Coverage Ruled Optional

Under the Affordable Care Act (ACA), employers who provide health insurance to their employees must pay for a plan that covers contraception. But last week, the US Supreme Court carved out an exemption to this requirement and ruled that the government cannot force closely-held for-profit corporations to cover the cost of birth control for its employees if doing so conflicts with the owners’ religious beliefs.

The Ruling

Two family-run businesses (Hobby Lobby and Conestoga Wood Specialties) challenged the ACA’s birth control coverage requirement, claiming that it infringed on their religious liberty protected by the Religious Freedom Restoration Act of 1993. In siding with the two companies, a majority of the Supreme Court found that requiring corporations to provide contraception coverage against their will places a substantial burden on the practice of their religious beliefs.

The Limits

The Court placed several restrictions on its ruling:

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  • The decision is limited to corporations run by families or other closely allied people
  • The ruling only deals with the question of contraception, and not similar claims of religious objections to other insurance requirements, such as blood transfusions and vaccinations
  • The Court cautioned against cloaking illegal discrimination as religious practice

 

The Next Steps

While lower courts are already beginning to halt enforcement of the contraception mandate against corporations with pending legal cases, it is not clear what process will be required for closely-held corporations to apply for a religious exemption from the ACA’s contraception requirement.

Amy Gallagher has over 21 years of healthcare industry experience guiding employers and employees. As Vice President at Cornerstone Group, she advises large employers on all aspects of healthcare reform, benefit solutions, cost-containment strategies and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, and is often quoted by national publications on the subject matter. Locally, Amy is a member of SHRM-RI, the Rhode Island Business Group on Health, and the Rhode Island Business Healthcare Advisory Council.

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