The Hobby Lobby craft store chain has won a major legal victory in its battle to avoid compliance with the federal contraceptive and abortion drug mandate when the Tenth U.S. Circuit Court of Appeals ordered a U.S. District Court to re-examine Hobby Lobby’s petition for a temporary injunction blocking enforcement of the mandate against the firm. 

The full panel of the Tenth Circuit ruled that Hobby Lobby had “established a likelihood of success that their rights…are substantially burdened by the contraceptive-coverage requirement, and have established an irreparable harm.” 

The Court concluded that Hobby Lobby had legitimate claims under the Religious Freedom Restoration Act.  The judges ruled that the right to free exercise of religion includes corporations.    

“The protections of the Religion Clauses extend beyond the walls of a church, synagogue, or mosque to religiously motivated conduct, as well as religious belief,” the judges wrote.  “Religious conduct includes religious expression, which can be communicated by individuals and for-profit corporations alike.” 

“We are encouraged by this decision,” said David Green, founder of Hobby Lobby Stores.  “We believe that business owners should not have to choose between following their faith and following the law.”  

“My family and I believe very strongly in our conviction that life begins at conception,” Green explains.  “The emergency contraceptives that we would be forced to provide under this mandate are contrary to that conviction.” 

Hobby Lobby faced fines of $1.3 million per day for failing to comply with the contraceptive and abortion drug mandate.  That mandate, issued by Health and Human Services Secretary Kathleen Sebelius, took effect on January 1st.    

The mandate requires all health insurance plans issued in the United States to provide “free” coverage of all contraceptives approved by the Food and Drug Administration.  The FDA definition of “contraceptives” includes abortifacient drugs and devices.   

The Department of HHS just announced “revisions” to the rules governing how the mandate applies to religious organizations.  While organized churches and their “integrated auxiliaries” are exempt from the mandate, other religious institutions are not. 

Under the latest rules, groups who are operated as non-profit entities, hold themselves out as religious organizations, and oppose contraceptive coverage based on religious objections, will not have to “pay” for such coverage in their health insurance plans. 

However, such groups will still be required to cooperate with their insurers or third-party administrators to ensure that the “free” coverage of contraceptives is provided to their employees. 

Obama Administration officials have painted the latest religious exemption rules as a compromise.  Catholic and Southern Baptist religious leaders have derided the “accomodation” as a sham.   

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Pro-life and religious leaders are sharply criticizing the Obama Administration’s revised contraceptive and abortion drug mandate, saying that it still requires religious employers to finance abortifacient drugs in their health insurance plans. 

“With another phony compromise, the Obama Administration continues to insult the intelligence of the American people and trample our constitutional rights,” reacted Charmaine Yoest, President of Americans United for Life.  “Our First Amendment freedom of conscience has been violated by Obamacare and these new regulations do not resolve the offense.”  

Under the “compromise” plan proposed by the U.S. Department of Health and Human Services, only organized churches, associations of churches, and their “integrated auxiliaries” are exempted from the contraceptive and abortion drug mandate. 

That means religious hospitals, religious educational institutions, and many other non-profit religious ministries that are not formal departments or subsidiaries of a church, will not be included in the religious exemption.    

The federal contraceptive regulation requires that every health insurance policy issued in the United States must include coverage without co-pays for all “contraceptive” drugs and devices approved by the Food and Drug Administration.  This includes drugs like Ella and Plan B, which have both contraceptive and abortifacient qualities.  It also includes intrauterine devices that operate as abortifacients. 

Under the new scheme developed by the Obama Administration, religious non-profits will supposedly not have to include contraceptive coverage in their insurance policies or their self-insurance plan.  However, their insurer or third-party administrator will have to provide separate insurance policies to each of their employees that does include contraceptive coverage regardless of whether the employee wants it or not.      

The proposed “compromise” states that insurers must provide this supplemental contraceptive coverage at no cost to the employee.  This is a ludicrous concept, as the cost of such coverage will obviously be absorbed into the insurance company’s overall expenses, and be charged back to policyholders. 

“This is nothing but an accounting gimmick that forces religious organizations…to be the gatekeeper to objectionable services for their employees,” says a statement from American United for Life.  “The contraceptive coverage is legally required to piggy-back onto the insurance plan, regardless of the employer’s objections.” 

The sham compromise concocted by the Obama Administration still leaves for-profit religious employers at the mercy of the punitive mandate.  Christian business owners will still have to include coverage of abortifacient drugs in the health insurance programs they provide to their employees.  They will still face exceedingly harsh fines of $100 per day per employee if they fail to comply. 

“All Americans, not just those in church organizations, are guaranteed freedom of conscience in their daily lives and in their work,” commented Matt Bowman, senior legal counsel for the Alliance Defending Freedom.  “The government has no business putting religious freedom on the negotiating table, or picking and choosing who is allowed to exercise their faith.” 

“This country’s laws and constitution protect the religious freedom of all Americans, whether organized into religious bodies or not,”  says Francis Manion, senior counsel for the American Center for Law and Justice.  “Religious believers who want to conduct their businesses in a manner consistent with their religious beliefs have the same right to religious liberty as everyone else.” 

Christian medical authorities are also deriding the latest version of the mandate.  “Many employers, regardless of whether they carry a religious label or not, maintain strong conscience objections to participating in any plan that pays for pills that can cause the demise of a living human embryo,” says Dr. Gene Rudd, Executive Vice President of the Christian Medical Association. 

One of those employers is David Green, founder and President of the Hobby Lobby chain of craft stores.  Green says his company will not comply with the mandate despite the failure of a lawsuit filed in federal court to protect his religious liberties.  Hobby Lobby faces fines of $1.3 million per day under the penalty provisions of the mandate. 

While Health and Human Services Secretary Kathleen Sebelius continues to play games with the religious freedoms of the American people, legal challenges to the abortion drug mandate continue to accumulate.  At last count, there have been a total of 44 lawsuits filed in federal court challenging the constitutionality of the mandate on religious freedom grounds. 

One of the latest to weigh in is the Drury Development Corporation, which operates the Drury chain of hotels.  Drury was founded by devout Catholic Charles Drury, and is now managed by his son Tim.  Drury has filed a friend of the court brief in a lawsuit filed by K&L Contractors, a construction firm located in Highland, Illinois. 

“The Drury family are adherents of the Catholic faith and wish to conduct their business in a manner that does not violate the principles of that faith,” reads the brief authored by Americans United for Life.  “The Drury family believes that life is a sacred gift from God and that they are not permitted to cause or pay for the direct, intentional termination of human life.  The Drury Corporation is forced to choose between conducting business in a manner consistent with its religious principles or pay ruinous fines and penalties.” 

The federal court of appeals whose jurisdiction includes Missouri is making it very clear where they stand on the constitutionality of the abortion drug mandate.  For the second time, the 8th Circuit Court of Appeals has issued a preliminary injunction blocking enforcement of the mandate, this time in the case of Annex Medical, a medical device firm located in Minnetonka, Minnesota.  The 8th Circuit had previously issued an injunction preventing enforcement of the mandate against a St. Louis company, O’Brien Industrial Holdings. 

The only hope to halt application of the abortion drug mandate to every health insurance provider and consumer is a decision by the U.S. Supreme Court upholding conscientious objections based on religious convictions.  An ultimate decision by the High Court is not expected before the new regulation becomes effective.  There is a public comment period on the revised mandate through April 3rd, after which the contraceptive edict is expected to take full force and effect.

The retail craft store chain Hobby Lobby has become the latest major employer to file suit over the Obama Administration’s Health and Human Services (HHS) contraceptive and abortion drug mandate — also known as the HHS Mandate. Hobby Lobby has gone into federal court to oppose the forced inclusion of abortifacient drugs in their corporate health insurance plans.

Under the mandate issued by Health and Human Services Secretary Kathleen Sebelius, virtually all health insurance policies issued in the United States must include coverage of any and all “contraceptives” approved by the Food and Drug Administration (FDA). This mandate requires coverage of drugs and devices that can destroy developing human embryos, including the abortifacient drugs Ella and Plan B, often marketed as so-called “emergency contraceptives.”

“The new government mandate requires that our family business provide what we believe are abortion-causing drugs as part of our health insurance,” says David Green, the chief executive officer of Hobby Lobby, Inc. “We choose not to cover drugs that might cause abortion, such as the morning-after pill or the week-after pill. We believe doing so might end a life after the moment of conception, something that is contrary to our most important beliefs.”

“It is by God’s grace and provision that Hobby Lobby has endured,” Green adds. “We seek to honor God by operating the company in a manner consistent with Biblical principles. We are being forced to choose between following the laws of the country that we love or maintaining the religious beliefs that have made our business successful and have supported thousands of our employees and their families.”

Hobby Lobby is the first major business owned by evangelical Christians to initiate litigation to block the contraceptive mandate. The company, which had its start in an Oklahoma City garage, now operates 500 stores in 41 states, employing 22,500 people. Hobby Lobby is one of the few retail chains which closes its stores on Sundays, to allow employees to enjoy a day of rest with their families.

Under the terms of the Obama Administration’s contraceptive mandate, Hobby Lobby faces fines of $1.3 million per day for refusing to comply with the contraceptive mandate. “We are required to make a choice between sacrificing our faith or paying millions of dollars in fines,” Green says. “The government is telling us we must choose which poison pill to swallow. We simply cannot abandon our religious beliefs to comply with this mandate.”

Nearly 30 lawsuits have been filed against the contraceptive and abortion drug mandate, which took effect on August 1st for all non-religious employers. Religious institutions other than churches, such as hospitals, colleges, and parachurch ministries, have until August 1st of 2013 to comply. Most of the lawsuits to date have been filed by Catholic dioceses and by Catholic and evangelical universities.

The Becket Fund for Religious Liberty has served as legal counsel for many of the above-named plaintiffs, and they are representing Hobby Lobby as well. “Washington politicians cannot force families to abandon their faith just to earn a living,” says Lori Windham, Becket Fund senior counsel. “Every American, including family business owners like the Greens, should be free to live and do business according to their religious beliefs.”

Liberal activists have announced a boycott of Hobby Lobby, launching a Facebook page to generate support. David Green is a poor choice for such a boycott. Green and his wife Barbara are major Christian philanthropists, and donate the majority of their wealth to charity. The company pays salaries to its starting full-time employees which are 80 percent above the minimum wage.

“Our government threatens to fine job creators in a bad economy,” Green observes. “Our government threatens to fine a company like ours that has raised wages four years running during this national recession. It’s just not right.”

Please pray for and support Hobby Lobby and business owners like the Greens, who have the courage to put their faith into practice in the marketplace. Thank God for their willingness to take a stand on behalf of human life despite the financial consequences to them and their families.