Additional Employers May Opt Out of Providing Contraceptive Coverage
On July 8, 2020, the U.S. Supreme Court upheld two regulations expanding exemptions from the contraceptive coverage mandate under the Affordable Care Act (ACA). Under the regulations, plan sponsors that object to providing contraceptive coverage based on sincerely held religious beliefs or moral convictions will not be penalized for failing to include contraceptive coverage in the plan’s benefits.
In January 2019, two federal courts temporarily blocked these regulations from taking effect nationwide. However, in a 7-2 decision, the Supreme Court ruled that the Trump administration had the authority under the ACA to provide exemptions from the contraceptive mandate for employers with religious and conscientious objections. The Supreme Court remanded the case to the lower courts to dissolve the nationwide preliminary injunction.
As a result, additional employers may now be able to opt out of providing the ACA’s mandated contraceptive coverage.
Information from our HR Library, HR360
