BAS Blog

Contraceptive Coverage Exception Under Health Care Reform

Written by BAS | Jul 10, 2014 12:44:00 PM

The U.S. Supreme Court recently responded to a challenge to health care reform by holding that closely held, for-profit businesses do not have to comply with the mandate to offer certain contraceptive coverage. 

In Burwell v. Hobby Lobby, a divided Supreme Court issued an opinion that closely held corporations, such as family-owned business, could seek an exception to providing their employees with certain contraceptive coverage.  The Court attempted to limit the decision to address only contraceptives, and not extend to other requirements of health care reform.  The basis for the decision was that imposing the contraception mandate on a closely held business violated the Religious Freedom and Restoration Act.  The Court said that the government could find a different method to achieve its goal without burdening the exercise of religion. 

While the decision is limited, it does offer certain family-owned businesses the opportunity to offer a health plan that does not provide certain contraceptive coverage.