H obby Lobby v. Sebelius

1. Hobby Lobby v. Sebelius

2. Green Family • Founded Hobby Lobby in 1972 • 514 stores in 41 states with 13,000 employees • Also founded Mardel – bookstore and educational supply co. specializing in Christian materials • 35 Stores in 7 States with 372 employees • Devout Christians • Operate Hobby Lobby and Mardel according to Christian Faith

3. “It is by God’s Grace and provision that Hobby Lobby has endured.”

4. US District Court W.D. Oklahoma Hobby Lobby v. Sebelius • Sued secretary of the US Dept. of Health and Human Services • Challenged the mandate in the ACA that required them to provide health insurance coverage that includes abortion-inducing drugs and devices • Sought preliminary injunction to prevent defendants from enforcing mandate

5. Procedural Posture

6. Procedural Posture • February 28, 2013: Plaintiffs filed Memorandum in Support of a Preliminary Injunction • March 15, 2013: Plaintiffs filed brief in 10th Circuit

7. Plaintiff’s Arguments • 1st Amendment: Free Exercise of Religion • Religious Freedom Restoration Act

8. Are Corporations People? • Free Exercise Clause: “Secure religious liberty in the individual by prohibiting any invasions thereof by civil authority” • Some religious organizations are corporations because they “exercise their religion through religious organizations” • RFRA: Look at the context of the statute in determining whether corporation is person under the law • Secular for-profit corporations generally cannot exercise religion under RFRA or Free Exercise

9. Holdings • Free Exercise Clause: • Corporations lack free exercise rights • Religious Freedom Restoration Act • Plaintiff is not a religious organization • Greens (Family) unlikely to establish “substantial burden” on them within meaning of RFRA • Mandate only applies to business, not officers or owners

10. Quick History of Birth Control • 99% of sexually active women between ages of 15 and 44 have used birth control • 70% of Americans believe insurance companies should cover birth control without co-pay • Currently, 18 for-profit companies are suing the federal government so that they don’t have to include birth control access to their employees

11. Access to Birth Control • Improved access to birth control is directly linked to declines in maternal and infant mortality • A Guttmacher study found that a majority of women said that birth control use had allowed them: • To take better care of themselves and their families (63%) • To support themselves financially (56%) • To complete their education (51%) • Or to keep or get a job (50%) • A study cited by Planned Parenthood found that more than 1/3 of female voters have struggled to afford prescription birth control

12. Short History of Health Care • US spends 20% of GDP on health care (other developed countries spend almost half) • Insurance Premiums Increased 10% each year since 2000 • In 2009, 50.9 million Americans were uninsured (16.7% of population) • In 2009, 26% of Americans with incomes of less than $25K were uninsured

13. Cost of Providing Health Care to Uninsured • Estimated Cost of Providing Health Care to Uninsured was projected to be $84.3 billion in 2008 • Estimated $42.9 billion was paid by government funds • Contraceptive use saves about $19 billion in medical costs each year

14. ACA • March 2010: Congress passed Patient Protection and Affordable Care Act of 2010 • ACA amended Public Health Service Act • Required that group health plans and health insurance issuers offering group or individual health insurance coverage provide benefits for certain preventative health services without the imposition of cost sharing…including preventative care for all FDA approved contraceptive methods, sterilization procedures, and patient education and counseling for all women with reproductive capacity

15. Religious Employer Exception • The Department of Health and Human Services (“HHS”) issued a regulation that exempts religious employers from the requirement of providing contraceptive services. • “Religious employer” is an employer that meets all of the following criteria: (1) the inculcation of religious values is the purpose of the organization; (2) the organization primarily employs persons who share the religious tenets of the organization; (3) the organization serves primarily persons who share the religious tenets of the organization and; (4) the organization is a non-profit organization as described by the IRS

16. ACA Exceptions • Exemption from application of the mandate until August 1, 2013 • Employers that do not comply with the contraceptive mandate face fines and penalties in the form of a tax, and additional enforcement actions for non-compliance • $1.3 million/day for Hobby Lobby

17. FDA Contraceptives • FDA-approved contraceptive medicines and devices include: • Barrier methods • Implanted devices • Hormonal methods • Emergency contraceptives • “Plan B” (which prevents fertilization of the egg) • “Ella” (which stops or delays release of the egg)

18. John Bouman • President and Advocacy Director of the Shriver Center – national center on poverty law that works to advance laws and policies securing justice to improve lives of people living in poverty • Public benefit advocate and has worked extensively to help provide health insurance for many Illinois Residents living in poverty • Currently working on state-based implementation on the health care reform

19. John Bouman Interview