The U.S. Department of Health & Human Services (HHS) has issued an interim final rule to provide another option for employees of religious non-profits to receive contraceptive coverage.  The Patient Protection and Affordable Care Act (ACA) generally requires that women receive coverage for recommended contraceptive coverage services at no additional cost, while providing an accommodation for religious non-profits that object to covering contraceptive services.  The interim final rule, which solicits comments but goes into effect upon publication, provides that eligible organizations have another option available.  Such organizations can provide written notification to HHS that providing contraceptive coverage violates the organization's religious beliefs.  After that notice has been provided HHS and the Department of Labor will notify the insurance carrier and third party administrators that enrollees in plans of such organizations should receive separate contraceptive coverage, with no additional cost to the enrollee or employer.  Instead, carriers and/or third party administrators may seek reimbursement for the cost of this coverage from the government.

HHS also issued a proposed rule to extent the same accommodation to certain closely held for-profit companies.  This proposal represents the Obama administration's response to the United State's Supreme Court's decision in Burwell v. Hobby Lobby that closely held for-profit corporations do not have to comply with the contraceptive mandate if they have religious objections to it.  Proposed Rule and Interim Final Rule