Colleges' Lawsuits Challenging Contraceptives Mandate on Hold Pending Additional Guidance: DC Circuit | Practical Law

Colleges' Lawsuits Challenging Contraceptives Mandate on Hold Pending Additional Guidance: DC Circuit | Practical Law

The US Court of Appeals for the DC Circuit in Wheaton College v. Sebelius ordered that cases brought by two colleges against the federal government's contraceptives mandate, which is part of the Affordable Care Act's (ACA's) preventive services rules, be put on hold in light of the government's representations that it would soon issue additional guidance addressing the mandate.

Colleges' Lawsuits Challenging Contraceptives Mandate on Hold Pending Additional Guidance: DC Circuit

by PLC Employee Benefits & Executive Compensation
Published on 21 Dec 2012USA (National/Federal)
The US Court of Appeals for the DC Circuit in Wheaton College v. Sebelius ordered that cases brought by two colleges against the federal government's contraceptives mandate, which is part of the Affordable Care Act's (ACA's) preventive services rules, be put on hold in light of the government's representations that it would soon issue additional guidance addressing the mandate.

Key Litigated Issues

In Wheaton College v. Sebelius, the key litigated issue was whether two colleges' claims challenging the government's contraceptive mandate, part of the Affordable Care Act's (ACA's) preventive services rules, for certain employers were ripe for review in light of a temporary enforcement safe harbor and ongoing rulemaking addressing how the mandate applies to health plans sponsored by nonprofit organizations having religious objections to contraception.

Background

In August 2011, HHS released guidelines under the Affordable Care Act's (ACA's) preventive services rules that require non-grandfathered group health plans and health insurers offering group or individual health insurance coverage to provide first-dollar coverage for contraceptives for women. Although an exemption was provided for group health plans established or maintained by certain religious employers, that exemption did not cover health plans sponsored by qualifying colleges and hospitals with religious affiliations. In February 2012, however, HHS issued guidance providing a temporary enforcement safe harbor under which health plans sponsored by certain religious-affiliated employers would have additional time to comply with contraceptives coverage mandate. The enforcement safe harbor remains in effect until the first plan year beginning on or after August 1, 2013. HHS reissued the bulletin in August 2012.
Wheaton College and Belmont Abbey College (the colleges), both religious-affiliated educational institutions, filed separate lawsuits in the US District Court for the District of Columbia challenging the contraceptives coverage mandate. The colleges' plan years begin in January 2014. These lawsuits were each dismissed on the grounds that:
  • The colleges lacked standing.
  • In light of the existing enforcement safe harbor and ongoing rulemaking related to the exemption, the colleges claims' were not ripe for review.
The colleges appealed, and on September 20, 2012, the DC Circuit consolidated the two cases and granted them an expedited appeal.

Outcome

On December 18, 2012, the US Court of Appeals for the DC Circuit issued an order in Wheaton College v. Sebelius, in which it:
  • Reversed the district courts' rulings on standing.
  • Affirmed the district courts' rulings that the cases were not yet ripe for review, and ordered that the cases be placed on hold.
  • Ordered the government to file regular status reports with the court every 60 days.
The court's conclusion that the cases were not fit for review was based on:
  • The government's temporary enforcement safe harbor and its stated intent to provide an accommodation for non-profit organizations with religious objections to the contraceptives coverage mandate, like the colleges.
  • Representations made by the government at oral argument that it would:
    • never enforce the contraceptives coverage mandate in its current form against the colleges or other similarly situated entities; and
    • issue proposed guidance for entities like the colleges in the first quarter of 2013, with a final rule published before August 2013.
Based expressly on the government's representations, the court concluded that the issues presented were not fit for review because they might never need to be resolved. However, the court stated that it would hold HHS to its representations, and ordered it to file status reports every 60 days from the date of the order (December 18, 2012).

Practical Impact

As the DC Circuit noted in its order, HHS' litigation position in this case goes further than its guidance issued to date and envisions a broad exemption or nonenforcement policy for health plans sponsored by nonprofit organizations like the colleges that have religious objections to offering contraception. Of course, the details of such a policy remain to be seen. The order also offers a clearer picture of the timing of HHS' proposed guidance, which can be expected (at least according to HHS' representations in this litigation) by the end of March 2013. The government's first status report regarding the proposed guidance is due in February 2012, assuming the guidance is not already issued by then.