Thursday, March 13, 2014

New Lawsuit Challenging Contraceptive Mandate Filed By Multi-employer Catholic Organization and Others

Catholic News Service and a press release from Catholic Benefits Association report on the latest lawsuit that has been filed to challenge the Affordable Care Act contraceptive coverage mandate. Plaintiffs in the lawsuit filed yesterday in federal court in the Western District of Oklahoma are Catholic Benefits Association and its captive insurance company, the Archdiocese of Oklahoma City and its Catholic Charities, All Saints Catholic School in Oklahoma, Archbishop William E. Lori and the Archdiocese of Baltimore, Cathedral Foundation in Baltimore, Villa St. Francis Catholic Care Center in Kansas City, KS, and Good Will Publishers in North Carolina.

Catholic Benefits Association is a recently-formed organization comprised of nearly 200 Catholic employers and 1000 parishes from around the United States.  The organization makes self-insurance plans with back-up stop loss insurance (with coverage consistent with Catholic values) available to members, and "provides a cost-effective strategy for Catholic employers seeking protection from the HHS contraception, abortion-inducing drugs or devices, sterilization, or related counseling ... Mandate and other similar state or federal mandates." (CBA FAQs).

With the U.S. Supreme Court about to hear arguments in the Hobby Lobby case on whether corporations can assert free exercise rights, it is interesting to note Catholic Benefits Association's criteria for becoming an employer member:
For-profit employers can become CBA members if (i) Catholics (or trusts or other entities wholly controlled by Catholic) own 51 percent or more of employer; (ii) 51 percent or more of the members of the employer’s governing body, if any, is comprised of Catholics; and (iii) either the employer’s owners or governing body has adopted a written policy stating that the employer is committed to providing no benefits to the employer’s employees or independent contractors inconsistent with Catholic values.
UPDATE: The complaint (full text) in Catholic Benefits Association v. Sebelius,(WD OK, filed 3/12/2014) is now available.