HHS Extends Compliance Date for Contraceptives Coverage for Certain Nonprofit Employers | Practical Law

HHS Extends Compliance Date for Contraceptives Coverage for Certain Nonprofit Employers | Practical Law

The Department of Health and Human Services (HHS) announced that it will extend the compliance date by one year for certain nonprofit employers that do not, because of their religious beliefs, offer health plan coverage for contraceptives, as required under the Affordable Care Act's (ACA's) preventive services rules. The delayed implementation rule does not expand the scope of religious employers who are exempt from the requirement to cover contraceptives under earlier guidance. 

HHS Extends Compliance Date for Contraceptives Coverage for Certain Nonprofit Employers

by PLC Employee Benefits & Executive Compensation
Law stated as of 23 Jan 2012 • USA (National/Federal)
The Department of Health and Human Services (HHS) announced that it will extend the compliance date by one year for certain nonprofit employers that do not, because of their religious beliefs, offer health plan coverage for contraceptives, as required under the Affordable Care Act's (ACA's) preventive services rules. The delayed implementation rule does not expand the scope of religious employers who are exempt from the requirement to cover contraceptives under earlier guidance.
On January 20, 2012, HHS issued a news release announcing that it will give certain nonprofit employers an additional year to comply with a requirement to cover contraceptives under the Affordable Care Act's (ACA's) preventive services regulations. The preventive services rules:
  • Require group health plans and health insurers to cover certain preventive services without imposing cost-sharing requirements.
  • Do not apply to grandfathered plans under the ACA.
Under prior HHS guidance and regulations, plans and insurers were generally required to provide coverage for contraceptive methods and counseling, though a limited exemption was provided for religious employers that satisfied set criteria (for example, primarily employing individuals who share the employer's religious tenets).
The HHS news release does not expand the exemption for religious employers, but offers a delayed compliance date for nonprofit employers who, because of religious beliefs, do not offer contraceptive coverage (for example, certain colleges and hospitals with religious affiliations). These employers will have until August 1, 2013 to satisfy the preventive service requirements. Plans that do not qualify for delayed implementation must provide coverage for contraceptives beginning August 1, 2012. To take advantage of the extended deadline, nonprofit employers must certify that they qualify for the delayed implementation. HHS will require employers that do not cover contraceptive services to provide their employees a notice stating that the services are available at other sites, such as public clinics. The delayed compliance date will be included in regulations that finalize interim final regulations on the preventive services requirements for health plans.

Practical Implications

The HHS announcement raises a number of issues that will presumably be addressed in the final regulations, for example:
  • The certification process for taking advantage of the compliance extension.
  • The deadline by which employers wishing to take advantage of the extension must file their certification.
  • The rules addressing how, and by when, employers must provide notice that they do not offer coverage of contraceptive services.
However, HHS did not indicate in its news release when the final regulations will be issued.
For more information on the preventive health services requirements, see Practice Note, Coverage of Preventive Health Services under the ACA.