A Colorado-based company that is not a religious organization got a temporary reprieve in complying with the Obama administration’s mandate that health plans cover contraceptives without patient cost sharing, under a new ruling from the U.S. District Court in Colorado.
The reform requirement takes effect for non-grandfathered and non-religious employer health plans on Aug. 1.
Judge John Kane’s grant on a motion for preliminary injunction is temporary, pending the judge’s consideration of the case’s merits; and even if it holds, it would be binding only on the plaintiff company. The injunction will last for three months and give both sides time to build their cases.
Background
On Aug. 1, 2011, the U.S. Department of Health and Human Services issued the contraceptive mandate as part of its rule to provide no-cost coverage for preventive care, which it defined to include contraception for women, starting with plan years that begin or after Aug. 1, 2012.
Hercules Industries, Inc., a manufacturer/distributor of HVAC products, is neither a religious nor a non-profit employer (both of which are required if one is to avoid the mandate). Nor is the Hercules health plan capable of gaining an exemption through grandfathered status, the court noted.
It challenged contraceptive mandate as violating the Religious Freedom Restoration Act and the First Amendment, saying the mandate prevents it from exercising its religious beliefs. The company filed a motion for injunction to prevent the federal government from enforcing the mandate.
The Court Weighs In
The court did not accept the government’s argument that the contraceptive mandate furthers an important health goal, and rejected the stance that noncompliance by one company posed a threat to the government’s goal of furthering public health.
Get the full story at hr.complianceexpert.com.