Health Care Law Blog

Proposed Rules Related to Coverage of Contraceptive Services Just Released

On January 30, 2013, the Departments of Treasury, Labor, and Health and Human Services (collectively, the “Departments”) jointly released proposed rules related to the coverage of preventive services under the Patient Protection and Affordable Care Act (“PPACA”).  When initially enacted, PPACA required certain health plans to provide benefits for particular preventive health services, including coverage of contraceptives, without the imposition of cost sharing measures (i.e., individuals covered by the plan would not be required to pay anything for the services).  This coverage requirement became effective on the first day of the plan year that followed August 1, 2012.  For calendar year plans, the effective date was January 1, 2013.

Since PPACA was enacted, additional guidance has been issued to address this coverage requirement.  A 2010 amendment, among other things, exempted group health plans established or maintained by religious employers from complying with this coverage requirement.  Shortly thereafter, a safe harbor was initiated, which prevented the Departments from taking enforcement actions against any religious employer for failure to fulfill the coverage requirements.

The Departments have now issued new proposed rules to accomplish the following two goals:

1. Amend the criteria for the religious employer exemption to insure that an otherwise exempt employer plan is not disqualified because the employer’s purposes extend beyond religious instruction or because the employer serves or hires people of different religious faiths.
2. Establish accommodations for health coverage maintained by eligible organizations, or arranged by eligible organizations, that are religious institutions of higher education with religious objections to contraceptive coverage.

If you have questions about the coverage requirements, the exemption for religious employers or whether your organization is eligible to participate in the safe harbor, please contact Mindi Johnson at 616-726-2252 or by using the form below.

Categories: Employee Benefits, Health Care Reform, Insurance, Regulatory