ACA Contraceptive Coverage Mandate Final Rules Issued: Employment Law Manual Updated
Author: Tracy Morley, XpertHR Legal Editor
Final rules regarding contraceptive coverage under the Affordable Care Act (ACA) were published July 14, 2015, and will take effect September 14, 2015. The US Supreme Court had held last year in Burwell v. Hobby Lobby that owners of closely held for-profit organizations with religious objections to providing contraceptive services were eligible for an accommodation from the ACA's contraceptive coverage mandate.
The final rules define a closely held for-profit entity as one that:
- Is not a nonprofit entity;
- Is not publicly traded;
- Has more than 50% of the value of its ownership interests owned directly or indirectly by five or fewer individuals, or has an ownership structure that is substantially similar; and
- Objects to providing contraceptive coverage based on its owners' religious beliefs.
An eligible organization that has a religious objection to the contraceptive coverage mandate may either:
- Use EBSA Form 700 for self-certification; or
- Notify the Department of Health and Human Services in writing of its religious objection.
The final rules apply on the first day of the first plan or policy year that begins on or after September 14, 2015.
In light of this development, the Health Care Benefits: Federal section of the Employment Law Manual has been updated, and a Legal Timetable entry has been added.