6. The federal mandate is much stricter than existing state mandates. HHS chose the narrowest state-level religious exemption as the model for its own. That exemption was drafted by the ACLU and exists in only 3 states (New York, California, Oregon). Even without a religious exemption, religious employers can already avoid the contraceptive mandates in 28 states by self-insuring their prescription drug coverage, dropping that coverage altogether, or opting for regulation under a federal law (ERISA) that pre-empts state law. The HHS mandate closes off all these avenues of relief.

More on the controversy from my Cato colleague Roger Pilon and from Jonathan Rauch. And: John Cochrane on the wider folly of letting the feds mandate contraceptive coverage in the first place: “Sure, churches should be exempt. We should all be exempt.”

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P.S. As Jack Leyhane notes, the Colorado controversy is related to, though not identical with, the longstanding controversy over the “collateral source” rule, which provides that payments by third parties to a plaintiff over an injury will not reduce or offset the liability of a tortfeasor. “It is the lien or subrogation rights of third parties — [which] vary widely from state to state — that make sweeping generalities about the collateral source rule difficult to formulate.”

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