On Tuesday, the Supreme Court ruled 5-4 that some businesses, due to religious beliefs, can choose to not comply with the health care law’s requirement that contraception coverage be provided to workers at no extra charge.
The ruling applies to businesses that are closely held — five or fewer individuals own more than 50 percent of the company’s stock.
By some estimates, 90 percent of businesses are closely held and employ about half the nation’s labor force of more than 155 million.
A survey by the Kaiser Family Foundation found 85 percent of large employers already paid for contraceptives before the health care law required it.
NEW YORK — Business owners who don’t want to pay for their employees’ birth control are ending that coverage after the Supreme Court said they could choose on grounds of religious belief not to comply with part of the health care law.
Some owners are already in touch with their brokers in the wake of Monday’s ruling.
Triune Health Group Ltd. wants to know how soon it can change its coverage to stop paying for all contraceptives, said Mary Anne Yep, co-owner of the Oak Brook, Ill., company that provides medical management services.
“Framing this as an issue of contraception is wrong,” she said. “It’s a battle against bullying by the government, telling us what to do.”
Triune, which has 80 employees, had filed lawsuits against the U.S. government and the state of Illinois because of requirements that they pay for contraception.
The Supreme Court ruled that some businesses can, because of their religious beliefs, choose not to comply with the health care law’s requirement that contraception coverage be provided to workers at no extra charge. The 5-4 ruling has the Obama administration looking for another way to provide birth control for women who work for those companies.
White House press secretary Josh Earnest said the decision creates health risks for women, and he said Congress should take action to make sure they get coverage.
“President Obama believes that women should make personal health care decisions for themselves rather than their bosses deciding for them,” Earnest said. “[Monday’s] decision jeopardizes the health of the women who are employed by these companies.”
The ruling applies to businesses that are closely held, generally defined as having five or fewer individuals owning more than 50 percent of the company’s stock. By some estimates, 90 percent of businesses are closely held and employ about half the nation’s labor force of more than 155 million.
While employers are not yet required to provide insurance under the health care law, many closely held companies do, and under the health care law, insurance is required to include contraceptive benefits. However, it’s not known how many closely-held companies offer insurance, how many workers they have and how many companies plan to stop paying for contraception.
But it’s likely many companies will continue providing coverage for birth control, which would reduce the number of affected workers. A survey by the Kaiser Family Foundation found 85 percent of large employers already paid for contraceptives before the health care law required it. Many owners believe it’s an important benefit that helps them attract and retain good workers.
Even employers who want to opt out of some forms of birth-control coverage see covering others as important.
“We want to provide for good health care for our people. We just don’t want to fund abortive procedures,” said Mike Sharrow, owner of C12 Group in San Antonio, with six employees.
The contraceptives at issue in Monday’s decision are two known as morning-after pills, the emergency contraceptives Plan B and ella; and two intrauterine devices, which are implantable devices inserted into the uterus to prevent pregnancy. Many owners objected to them because they believe they may work after conception occurs. However, on Tuesday, the court left in place lower court rulings in other cases that allowed businesses to refuse to pay for all methods of government-approved contraception.
The case decided by the Supreme Court involved two companies, Hobby Lobby and Conestoga Wood Specialties Corp. About 50 others also filed suit against the health care law’s contraception requirement. Hobby Lobby has more than 15,000 full-time employees while Conestoga has about 950. Hobby Lobby is by far the largest employer among the 50 or so for-profits that sued.
Some of the companies that have sued received court injunctions allowing them not to pay for birth control; the Supreme Court’s ruling is expected to allow them to continue that policy.
In a dissent she read aloud from the bench, Justice Ruth Bader Ginsburg called the decision “potentially sweeping” because it minimizes the government’s interest in uniform compliance with laws affecting the workplace.
“And it discounts the disadvantages religion-based opt-outs impose on others, in particular, employees who do not share their employer’s religious beliefs,” Ginsburg said.
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