Health Care Reform Alert: SCOTUS Ruling, ACA and Contraceptive Coverage

Health Care Reform Alert: SCOTUS Ruling, ACA and Contraceptive Coverage

The Supreme Court allows closely-held, for-profit companies to exclude contraceptive coverage.

In a 5-4 decision, today (6/30/14) the Supreme Court of the United States ruled that closely-held, for-profit corporations cannot be required to provide the contraceptive coverage mandated by the Patient Protection and Affordable Care Act (PPACA) if coverage of contraceptives violates the sincerely held religious beliefs of the companies’ owners.

The Court was careful to point out the limited scope of its decision:

  • It applies only to closely-held companies with very few shareholders. It does not apply to larger, publicly-traded, for-profit companies, and it does not change the current contraceptive requirements for other employers.
  • It applies only to the PPACA contraceptive mandate and should not be understood to apply to other insurance coverage mandates that conflict with an employer’s religious beliefs.
  • It also does not allow discrimination based on religious objections.

The Supreme Court decision suggested that employees of these companies may be able to access contraceptive coverage in the same way that employees of religious non-profit organizations do. While the employer is not required to provide or pay for coverage, separate contraceptive coverage can be provided by the insurer or plan administrator.

We expect further guidance from the Department of Health and Human Services clarifying how this ruling will impact the administration of contraceptive coverage.

Source: Cigna

Employee Benefits Questions?

If you have questions regarding this latest ruling, please contact a FosterThomas Benefits Plan Advisor for further assistance.

Health Care Reform Questions?

For the latest information on health care reform, please visit our Health Care Reform News webpage.

Learn More

Share

About the Author

FosterThomas is a leading professional services company that provides solutions in the areas of Human Resources Consulting and Outsourcing, HR Staffing, Outsourced Recruiting, Employee Benefits Brokerage, Payroll Implementation and Services, HR for Government Contractors, Business Insurance, HR Compliance and Risk Management. We help organizations by providing solutions designed with a focus on cost containment strategies and increasing HR efficiency. FosterThomas HR Consulting was established in 1993 with offices in Annapolis, Maryland (Corporate), McLean, Virginia and Raleigh, North Carolina. Today, FosterThomas occupies a unique position as a full service provider of HR services.

1 Comment

  1. July 3, 2014 at 3:19 pm

    What an interesting ruling! It;s nice to know that larger companies still have to provide these means to employees. However, it is understandable if a company is closely held and if providing these medical supplements is against those founders' religious beliefs that they would not have to provide them. I just hope this ruling and its potential loophole does not end up being abused by employers just trying to save money by not offering payment of this. Thanks!

    Reply »

Leave a Comment

We would be glad to get your feedback. Take a moment to comment and tell us what you think.

Share
HR Outsourcing MD, DC, VA, PA