The Obama administration proposed broader latitude Friday for religious nonprofits that object to the mandated coverage of contraceptives, one that will allow large faith-based hospitals and universities to issue plans that do not directly provide birth control coverage.
Their employees would instead receive a stand-alone, private insurance policy that would provide contraceptive coverage at no cost.
The new proposal aims to find middle ground between faith-based nonprofits, such as universities and hospitals, that have a religious opposition to contraceptives, and women’s health advocates who vociferously supported the required coverage of birth control without co-payment.
It could also breathe new life into lawsuits filed against the Affordable Care Act’s contraceptive requirement, some of which were put on hold until the Obama administration clarified its policy on the issue.
Under this proposal, objecting nonprofits will be allowed to offer employees a plan that does not cover contraceptives. Their health insurer will then automatically enroll employees in a separate individual policy, which only covers contraceptives, at no cost. This policy would stand apart from the employer’s larger benefit package.
The faith-based employer would not “have to contract, arrange, pay or refer for any contraceptive coverage to which they object on religious grounds.”
The Affordable Care Act initially required all employers to cover contraceptives as part of a larger package of preventive health benefits for women. Some religious groups opposed the requirement, which they argued would force them to go against their faith-based beliefs. Houses of worship would be exempt.
Last February, the Obama administration announced an accommodation to faith-based nonprofits: A third-party insurance company would cover the cost of contraceptive coverage.
Religious leaders derided the policy as an “accounting gimmick,” arguing that the premiums they pay to a health insurer could ultimately end up paying for the contraceptives they opposed.
The compromise also did not address large companies that self-insure, footing the entire bill for their employees’ health care rather than paying premiums to an health insurance plan. The Obama administration outlined a number of policy suggestions in March that could address those concerns. It included proposals such as contracting with a national insurance plan to provide coverage or tapping into other pots of federal dollars.
Under the policy proposed Friday, self-insured plans opting out of contraceptive coverage would notify the company that administers their health benefits. That third-party administrator would then be responsible for arranging “separate individual health insurance policies for contraceptive coverage from an issuer providing such polices.”
Private employers and faith-based nonprofits have filed more than 40 lawsuits against the contraceptive mandate. Judges in at least two cases have put a hold on issuing a decision until the administration offered additional guidance on how it would handle contraceptive coverage at faith-based non-profits.
The U.S. Conference of Catholic Bishops, which has led the national coalition of religious conservatives opposed to the mandate, issued a quick statement Friday that revealed little.
“We welcome the opportunity to study the proposed regulations closely. We look forward to issuing a more detailed statement later,” Cardinal Timothy Dolan of New York, president of the U.S. Conference of Catholic Bishops, said in a statement.
A spokeswoman for the bishops said earlier Friday that they had not been part of recent consultations with the White House as the regulations were being rewritten.
The Susan B. Anthony List, which opposes abortion rights, came out in opposition to the new policy, which does not allow any exemption for private employers.
“Once again, President Obama’s so-called ‘compromise’ is unacceptable – religious and moral freedom is not up for negotiation,” SBA List president Marjorie Dannenfelser said. “There must be no religious ‘test’ by the government as to who, and what type of entities, are entitled to a conscience. We demand respect for non-religious entities such as the Susan B. Anthony List that recognize the taking of human life is the antithesis of health care.
Many women’s health groups quickly supported the new policy.
“Today’s draft regulation affirms yet again the Obama administration’s commitment to fulfilling the full promise of its historic contraception policy,” NARAL Pro-Choice America President Ilyse Hogue said. “Thanks to this commitment, most American women will get birth-control coverage without extra expense. Increased access to birth control is a huge win for women and is necessary to prevent unintended pregnancy — a goal on which both pro-choice and anti-choice people ought to agree.”