Some corporations have religious rights, a deeply divided Supreme Court decided Monday in ruling that certain for-profit companies cannot be required to pay for specific types of contraceptives for their employees.
The 5-4 decision based on
ideological lines ended the high court's term with a legal and political setback
for a controversial part of President Barack Obama's healthcare reform law. It also set off a frenzied
partisan debate that will continue through the November congressional elections
and beyond over religious and reproductive rights.
All five conservative justices
appointed by Republican presidents ruled in favor of closely held for-profit
businesses -- those with at least 50% of stock held by five or fewer people,
such as family-owned businesses -- in which the owners have clear religious
beliefs.
Contraceptives or
abortion?
Both corporations -- Conestoga
Wood Specialties of Pennsylvania and Hobby Lobby, an Oklahoma-based
arts-and-crafts retail giant -- emphasize their conscientious desire to operate
in harmony with biblical principles while competing in a secular
marketplace.
They argued the Affordable Care
Act, also known as Obamacare, violates the First Amendment and other federal
laws protecting religious freedom because it requires them to provide coverage
for contraceptives like the "morning-after pill," which the companies consider
tantamount to abortion.
"The companies in the cases
before us are closely held corporations, each owned and controlled by members of
a single family, and no one has disputed the sincerity of their religious
beliefs," Justice Samuel Alito wrote in the majority opinion.
The four liberal justices
appointed by Democratic presidents, including the high court's three women,
opposed the ruling as a possible gateway to further religious-based challenges
that limit individual choice and rights.
"Into a
minefield"
In dissent Justice Ruth Bader
Ginsburg wrote the court had "ventured into a minefield," adding it would
disadvantage those employees "who do not share their employer's religious
beliefs." The practical result will likely
be an administrative fix by the Obama administration that subsidizes the
contraceptives at issue, said CNN political analyst Gloria Borger.
"So in terms of a real gap in
medical coverage for these women, should they want it, I think what you are
going to see is the government sort of picking up where Hobby Lobby would leave
off," Borger said.
White House spokesman Josh
Earnest signaled as much, telling reporters the Obama administration will work
with Congress to ensure women affected by the ruling will continue to have
coverage for contraceptives.
Obama believes the decision
"jeopardizes the health of women who are employed by these companies," Earnest
said. The decision comes two years
after the justices narrowly preserved the health care reforms known as Obamacare
and its key funding provision in another politically charged ruling.
This time, the issue revolved
around a 1994 federal law known as the Religious Freedom Restoration Act (RFRA),
which Alito's opinion said prevents the government from "taking any action that
substantially burdens the exercise of religion unless that action constitutes
the least restrictive means of serving a compelling government interest."
Alito wrote that the court's
conservative majority rejected the argument by the Department of Health and
Human Services that "the owners of the companies forfeited all RFRA protection
when they decided to organize their businesses as corporations rather than sole
proprietorships or general partnerships."
"The plain terms of RFRA make it
perfectly clear that Congress did not discriminate in this way against men and
women who wish to run their businesses as for-profit corporations in the manner
required by their religious beliefs," he wrote.
Complex mix
Monday's case presented a
complex mix of legal, regulatory, and constitutional concerns-- over such
hot-button issues as faith, abortion, corporate power, executive agency
discretion, and congressional intent. The political stakes were large,
especially for the future effectiveness of the health law itself, which marked
its fourth anniversary this spring.
The botched rollout of
HealthCare.gov, the federal Obamacare website, was another political flashpoint
along with other issues that many Republicans say proves the law is
unworkable. They have made Obamacare a key
campaign issue in their fight to take control of the Senate while retaining
their House majority.
"Today's decision is a victory
for religious freedom and another defeat for an administration that has
repeatedly crossed constitutional lines in pursuit of" big government, said
House Speaker John Boehner, an Ohio Republican. "The President's health care law
remains an unworkable mess and a drag on our economy."
Rep. Debbie Wasserman Schultz of
Florida, who heads the Democratic National Committee, framed the ruling as a
campaign issue for November.
"It is no surprise that
Republicans have sided against women on this issue as they have consistently
opposed a woman's right to make her own health care decisions," she said,
calling the ruling a "dangerous precedent." Barbara Green, a founder of
Hobby Lobby, called the ruling "a victory, not just for our family business, but
for all who seek to live out their faith."
However, Senate Majority Leader
Harry Reid of Nevada said the decision "jeopardizes women's access to essential
health care," adding that "your boss should never be able to make your health
care decisions for you."
Contraception
mandate
The section of law in dispute
requires some for-profit employers to offer insurance benefits for birth control
and other reproductive health services without a co-pay. A number of companies equate
some of the covered drugs, such as the so-called morning-after pill, as causing
abortion.
The specific question presented
was whether these companies can refuse, on the sincere claim it would violate
their owners' long-established moral beliefs. Supporters of the law fear the
high court setback on the contraception mandate now will lead to other
healthcare challenges on religion grounds, such as do-not-resuscitate orders and
vaccine coverage.
More broadly, many worry giving
corporations religious freedom rights could affect laws on employment, safety,
and civil rights.
The abortion
link
The Hahn family, owners of
Conestoga, and the Green family, owners of Hobby Lobby, said some of the
mandated contraception prevent human embryos from being implanted in a woman's
womb, which the plaintiffs equate with abortion.
That includes Plan B
contraception, which some have called the "morning after" pill, and intrauterine
devices or IUDs used by an estimated 2 million American women. Monday's decision comes two
years after the justices allowed the law's "individual mandate" to go into
effect.
That provision requires most
Americans to get health insurance or pay a financial penalty. It is seen as the
key funding mechanism to ensure near-universal health coverage.
Under the Affordable Care Act,
financial penalties of up to $100 per day, per employee can be levied on firms
that refuse to provide comprehensive health coverage. Hobby Lobby, which has
about 13,000 workers, estimates the penalty could cost it $475 million a
year.
The church-state issue now in
the spotlight involves rules negotiated between the Obama administration and
various outside groups. Under the changes, churches and houses of worship are
completely exempt from the contraception mandate.
Other nonprofit, religiously
affiliated groups, such as church-run hospitals, parochial schools and charities
must either offer coverage or have a third-party insurer provide separate
benefits without the employer's direct involvement. Lawsuits in those cases are
pending in several federal appeals courts.
The cases are Burwell (Sebelius)
v. Hobby Lobby Stores, Inc. (13-354); and Conestoga Wood Specialties Corp. v.
Burwell (Sebelius) (13-356).
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