In The Legal Loop

Deena B. Rosendahl Esq.

Healthcare Obligations Change for Closely Held Corporations.

by Deena B. Rosendahl, Esq.

On Monday, June 30, 2014 our Supreme Court weakened the impact of the Health Care Reform Act (a.k.a. Obamacare) and its requirement that employers provide healthcare coverage for certain contraceptive devices. The Supreme Court has ruled that certain for-profit companies (closely held for profit businesses – those with at least 50% of stock held by five or fewer people) can no longer be required to pay for certain types of contraceptive devices for their employees.

Both corporations involved in the ruling argued their rights under the first amendment, as well as under the 1994 federal law known as the Religious Freedom Restoration Act (RFRA) which prevents government from taking any action that substantially burdens the exercise of religion unless that action constitutes the least restrictive means of servicing a compelling government interest. The companies involved in the decision argued their right to operate their businesses in compliance with biblical principles and should not be required to provide health care coverage for certain contraceptive devices which are against their religious beliefs. They argued that Obamacare is a violation of the First Amendment as well as RFRA and other federal laws which protect religious freedom in that this law requires them to provide health insurance coverage for contraceptive devices, such as the morning after pill, which they consider tantamount to abortion and in direct contravention of their religious beliefs.

The full ruling can be read in its entirety by clicking here:

Kaufman, Semeraro and Leibman, LLP