Federal Agencies Propose Recission of ACA Moral Exemption Rule

April 13, 2023
Hall Benefits Law, LLC

Three federal agencies – U.S. Department of Health and Human Services (HHS), the Treasury Department, and the Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) – jointly published proposed rules that would rescind the “moral exemption rule” concerning Affordable Care Act (ACA) coverage of contraception. In 2018, the Trump administration enacted the policy, and the U.S. Supreme Court subsequently upheld the rule that allowed employers without a church affiliation to avoid the ACA’s contraception mandate. The new proposed rules leave the exemption to the contraception mandate for church-affiliated employers, in line with the high Court’s earlier ruling.

Under the proposed rules, the ACA generally would still require individual and group health insurance plans to cover certain contraceptive services, at no cost to participants. The rules introduce an “individual contraceptive agreement.” When an employer objects to the mandate, the individuals still could obtain no-cost contraceptive services without any involvement by the employer. Providers or facilities providing the services could then seek reimbursement through an arrangement with an issuer on federal or state insurance exchanges.

In its proposed rules, the federal agencies emphasized the heightened need for access to contraception for all women based on the U.S. Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization, which severely restricted access to abortion for women in many areas of the country. The agencies also indicated that they chose to maintain the exemption for church-affiliated employers because the Religious Freedom Restoration Act (RFRA) could sometimes require religious exemptions from contraceptive coverage.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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