The Supreme Court ruled June 30 in Burwell v. Hobby Lobby Stores, Inc., 573 U.S. ___ (2014) that "closely held corporations" whose owners have sincerely held religious beliefs that are violated under the Religious Freedom Restoration Act (RFRA) cannot be required to offer contraceptive coverage as part of their health plans.
The decision held that the Department of Health and Human Services' (HHS) regulations mandating that health insurance offered by certain entities cover 100% of the cost of contraceptives violate the RFRA and are unlawful.
The Supreme Court's decision, while intended to be narrow in scope, leaves open some questions. It generally limited its opinion to the contraceptive mandate and closely held corporations. "Our decision should not be understood to hold that an insurance-coverage mandate must necessarily fall if it conflicts with an employer's religious beliefs," the Court held. Nor does the Hobby Lobby decision provide any shield against an employer seeking to discriminate in hiring on the basis of religious practice, the Court held.
For more information, see Tax Flash 2014-07.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
