OLR Report 2012-R-0192 compares federal and state religious employer exemptions for insurance coverage of contraceptives as of August 2011.
Both federal and state law requires health insurance policies to cover contraceptives in certain circumstances. State law and federal rules implementing federal law exempt certain religious employers from the insurance coverage requirement. The state exemption appears to be the broader exemption, meaning more organizations would be able to claim the exemption under state law than under the federal rule.
The federal exemption contained in the August 2011 interim final rules is narrowly drawn to apply to nonprofit religious organizations that “primarily” employ and serve people who share the organizations' religious tenets. In practice, Catholic organizations, such as universities and hospitals, seem to hire and serve people regardless of whether they share the organizations' religious tenets. Thus, it appears that such organizations would not qualify for the federal exemption.
The state exemption is broadly drafted to apply to “qualified church-controlled organizations” and church-affiliated organizations. Although the law does not define “church-affiliated organizations,” this seems to include universities and hospitals affiliated with the Catholic Church, regardless of their practices to hire and serve people from the general public.
For more information and greater detail, read the full report.
