Ave Maria Foundation v. Sebelius

991 F. Supp. 2d 957, 2014 WL 117425, 2014 U.S. Dist. LEXIS 3516
CourtDistrict Court, E.D. Michigan
DecidedJanuary 13, 2014
DocketCase No. 13-cv-15198
StatusPublished
Cited by10 cases

This text of 991 F. Supp. 2d 957 (Ave Maria Foundation v. Sebelius) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ave Maria Foundation v. Sebelius, 991 F. Supp. 2d 957, 2014 WL 117425, 2014 U.S. Dist. LEXIS 3516 (E.D. Mich. 2014).

Opinion

OPINION AND ORDER GRANTING A PRELIMINARY INJUNCTION

STEPHEN J. MURPHY, III, District Judge.

Plaintiffs are five nonprofit organizations seeking to invalidate federal regulations that require employer-sponsored health insurance plans to include coverage for contraceptives, abortifacients, and sterilization at no cost to the plan beneficiaries. All five organizations object to the challenged regulations for religious reasons, and none of the organizations qualify for a “straight-up” exemption. Although Plaintiffs could avoid the requirement through an accommodation for religious objectors, to qualify, Plaintiffs must execute a self-certification that obliges their insurer to provide the objectionable services at no cost to the plan beneficiaries. Plaintiffs say that providing even indirect support for contraception, abortion, and sterilization would also violate their religious convictions.

Because failure to cover the required services or execute a self-certification by January 1, 2014 could have subjected Plaintiffs to financial penalties or other harms, Plaintiffs moved for a temporary restraining order. The Court granted the motion on the briefs and scheduled a hearing to determine if a preliminary injunction should issue. The Court canceled the hearing after the parties jointly moved for a ruling based on the submissions in their briefs. Having considered the parties’ submissions, the Court will issue a preliminary injunction.

BACKGROUND

I. Statutory and Regulatory Framework

The Affordable Care Act (“ACA”) requires employers with fifty or more employees to offer health insurance plans meeting certain coverage requirements. [961]*961See 26 U.S.C. § 4980H. Failure to comply exposes an employer to substantial fines. See 26 U.S.C. §§ 4980D(a), 4980H(a). Although smaller employers need not sponsor a health plan, if they elect to do so, the government asserts that their health plans must also meet the minimum coverage requirements.1 Def.’s Resp. 5, ECF No. 9.

One such requirement is that health plans cover “preventative care and screening” for women “as provided for in comprehensive guidelines supported by the Health Resources and Services Administration [‘HRSA’].” 42 U.S.C. § 300gg-13(a)(4). The HRSA adopted guidelines (“HRSA Mandate”), in turn, require coverage of “all Food and Drug Administration approved contraceptive methods, sterilization procedures, and patient education and counseling for women with reproductive capacity.” HRSA, Women’s Preventative Services: Required Health Plan Coverage Guidelines, available at http://www.hrsa. gov/womensguidelines/ (last visited Jan. 13, 2014); see also Eden Foods, Inc. v. Sebelius, 733 F.3d 626, 628 (6th Cir.2013).

The ACA and implementing regulations initially varied this requirement for grandfathered health plans and health plans sponsored by religious employers. See 42 U.S.C. § 18011(a)(2); 45 C.F.R. §§ 147.140, 147.131(a). A health'plan is grandfathered if at least one person has been continuously enrolled in the plan since March 23, 2010, and if the terms of the plan have remained unchanged. See 45 C.F.R. § 147.140; see also 26 C.F.R. § 54.9815-1251T; 29 C.F.R. § 2590.715-1251. A “religious employer” (1) has the “inculcation of religious values as its purpose,” (2) “primarily employs persons who share its religious tenets,” (3) “primarily serves persons who share its religious tenets,” and (4) is a non-profit organization under Sections - 6033(a)(1) and 6033(a)(3)(A)® or (iii) of the Internal Revenue Code. 45 C.F.R. § 147.131(a).

After receiving objections from organizations that did not qualify as religious employers, the government temporarily exempted nonprofit religious organizations from the HRSA Mandate. See Korte, 735 F.3d at 661-62. The government also proposed and adopted an “accommodation” that allows “eligible organizations” to avoid the HRSA Mandate through a self-certification process. Coverage of Certain Preventative Services under the Affordable Care Act, 78 Fed.Reg. 39,873-74 (July 2, 2013). An eligible organization is one that (1) “opposes providing coverage for some or all ... contraceptive services ... on account of religious objections”; (2) “is organized and operates as a nonprofit entity”; (3) “holds itself out as a religious organization”; and (4) self-certifies that it satisfies the foregoing criteria. See 45 C.F.R. § 147.131(a).

Athough an eligible organization is not required to file anything with the govern[962]*962ment, the organization must provide a copy of the self-certification to its health insurance provider. See 45 C.F.R. § 147.131(c)(1). The eligible organization is then relieved of any obligation to “contract, arrange, pay, or refer for contraceptive coverage,” 78 Fed.Reg. at 39,874, and the organization’s insurer must exclude contraceptive coverage from the organization’s health plan, see 45 C.F.R. § 147.131(c). But receipt of the self-certification obliges. the' insurer to “[pjrovide separate payments for any contraceptive services required to be covered” at no cost to the plan beneficiaries and to notify them of the available coverage. 45 C.F.R. § 147.131(c)(2)(i)-(d).

The final rules governing the accommodation for eligible organizations became effective January 1, 2014, at which point the temporary safe harbor also expired. See 78 Fed.Reg. at 39,872.

II. The Plaintiff Organizations

Plaintiffs are five nonprofit organizations “founded, organized, and ... maintained in conformity with and/or for furtherance of the teachings of the Catholic Church.” Monaghan Decl. ¶ 28, ECF No. 3-2. The Ave Maria Foundation was founded “to promote and spread Catholic education, Catholic media, community projects, and other Catholic charities.” Monaghan Decl. ¶ 7. It supports a variety of organizations, including three of its co-plaintiffs, that “teach the principles of the Catholic tradition,” support the Catholic Church’s “moral and social teachings,” and educate the public about the Catholic Church. Monaghan Decl. ¶¶ 11, 18, 21, 23.

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Cite This Page — Counsel Stack

Bluebook (online)
991 F. Supp. 2d 957, 2014 WL 117425, 2014 U.S. Dist. LEXIS 3516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ave-maria-foundation-v-sebelius-mied-2014.