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Healthcare Business News
 

Hobby Lobby sues over morning-after pill coverage


By Associated Press
Posted: September 12, 2012 - 3:30 pm ET
Tags:

Christian-oriented Hobby Lobby Stores filed a federal lawsuit Wednesday challenging a mandate in the nation's healthcare overhaul law that requires employers to provide coverage for the morning-after pill and similar drugs.

The lawsuit by the Oklahoma City-based chain claims the government mandate is forcing the company's owners "to violate their deeply held religious beliefs under threat of heavy fines, penalties and lawsuits." Failure to provide the drugs in the company's health insurance plan could lead to fines of up to $1.3 million a day, the company said.

"By being required to make a choice between sacrificing our faith or paying millions of dollars in fines, we essentially must choose which poison pill to swallow," David Green, Hobby Lobby CEO and founder, said in a statement. "We simply cannot abandon our religious beliefs to comply with this mandate."

The lawsuit, filed in U.S. District Court in Oklahoma City, alleges the HHS mandate is unconstitutional and requests an injunction to prohibit it from being enforced. Hobby Lobby is self-insured and will be required to comply with the mandate by Jan. 1, the start of its health insurance plan year.

"We are confident that the court will act quickly," said Kyle Duncan, general counsel for the Becket Fund for Religious Liberty in Washington, which represents Hobby Lobby. Duncan said 27 other lawsuits have been filed nationwide over the mandate, mostly by not-for-profit groups.

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"This mandate violates the religious liberty of millions of Americans," Duncan said. "The government has turned a deaf ear to the rights of business owners."

Duncan said the lawsuit does not challenge rules regarding a variety other birth-control measures. Hobby Lobby is the largest and only non-Catholic-owned business to file a lawsuit challenging the mandate.


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