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December 27th, 2012
07:20 PM ET
Hobby Lobby faces millions in fines for bucking ObamacareBy Eric Marrapodi, CNN Belief Blog Co-Editor Washington (CNN)– Craft store giant Hobby Lobby is bracing for a $1.3 million a day fine beginning January 1 for noncompliance with the Patient Protection and Affordable Care Act, dubbed Obamacare. The company opposes providing some contraceptives to employees through its company health care plan on religious grounds, saying some contraceptive products, like the morning after pill, equate to abortion. After failing to receive temporary relief from the fines from the Supreme Court, Hobby Lobby announced late Thursday through its attorneys that it "will continue to provide health insurance to all qualified employees. To remain true to their faith, it is not their intention, as a company, to pay for abortion-inducing drugs." In September, Hobby Lobby and affiliate Mardel, a Christian bookstore chain, sued the federal government for violating their owners' religious freedom and ability to freely exercise their religion. Follow the CNN Belief Blog on Twitter "All they're asking for is a narrow exemption from the law that says they don't have to provide drugs they believe cause abortions," Hobby Lobby attorney Kyle Duncan, a general counsel for the Becket Fund for Religious Liberty, told CNN affiliate KFOR in November. "Our basic point is the government can't put a corporation in the position of choosing between its faith and following the law." The lawsuit says the companies' religious beliefs prohibit them from providing insurance coverage for abortion inducing drugs. As of August 2012, the Patient Protection and Affordable Care Act requires employer-provided health care plans to provide "all Food and Drug Administration approved contraceptive methods, sterilization procedures, and patient education and counseling for all women with reproductive capacity," according to the U.S. Department of Health and Human Services. Churches and houses of worship are exempt from the regulation and a narrow exemption was added for nonprofit religious employers whose employees "primarily share its religious tenets" and who "primarily serve persons who share its religious tenets." In the face of that opposition, the Department of Health and Human Services tweaked its original rule in February to require health insurers, not employers, to cover the cost of contraception coverage, reasoning that would prevent religious groups from having to finance such coverage. Critics have argued that exemption for nonprofits is far too narrow and a host of nonprofit religious groups have sued the administration over the regulations. The Internal Revenue Service regulations now say that a group health care plan that "fails to comply" with the Affordable Care Act is subject to an "excise tax" of "$100 per day per individual for each day the plan does not comply with the requirement." It remains unclear how the IRS would implement and collect the excise tax. The Oklahoma City, Oklahoma, based Hobby Lobby chain has more than 500 stores that employ 13,000 employees across 42 states, and takes in $2.6 billion in sales. The company's attorneys say January begins a new health care plan year for Hobby Lobby and that excise tax from the IRS would amount to $1.3 million a day. Hobby Lobby is owned by CEO and founder David Green and members of his family. "The foundation of our business has been, and will continue to be strong values, and honoring the Lord in a manner consistent with biblical principles," a statement on the Hobby Lobby website reads, adding that one outgrowth of that is the store is closed on Sundays to give its employees a day of rest. Each year the company also takes out full-page ads in numerous newspapers proclaiming its faith at Christmastime and on Independence Day. The store is not formally connected to any denomination, but the Green family supports numerous Christian ministries and is behind the Green Collection, one of the largest private collections of biblical antiquities in the world. The family plans to permanently house the collection in Washington at a museum set to open in 2016. On Friday, attorneys for Hobby Lobby petitioned the Supreme Court to intervene and provide temporary relief from the the fines until the case was decided by the U.S. 10th Circuit Court of Appeals in Denver. CNN’s Belief Blog: The faith angles behind the biggest stories Wednesday evening, Justice Sonia Sotomayor, who handles emergency appeals from the 10th Circuit Court, said the company failed to meet "the demanding standard for the extraordinary relief," and that it could continue to pursue its challenge in lower courts and return to the higher court, if necessary, after a final judgment. "Hobby Lobby will continue their appeal before the 10th Circuit. The Supreme Court merely decided not to get involved in the case at this time," Duncan said in a statement. A spokesperson for the Justice Department declined to comment on the high court's move. White House officials have long said they believe they have struck an appropriate compromise between religious exemptions and women's health. The White House has not commented specifically on the Hobby Lobby case. "It's just so sad that Hobby Lobby is facing this choice. What company, even a successful family owned business like Hobby Lobby, how can they afford the government $1.3 million in fines every day? It's just really absurd that government is not giving on this," said Maureen Ferguson, a senior policy adviser for the Catholic Association. Religious liberty groups like hers are watching the Hobby Lobby case closely. "I am optimistic that these cases will eventually snake their way back up to the Supreme Court and given a full hearing on the merits of the case, I am confident that the Supreme Court will rule in favor of religious liberty," Ferguson said. "But in the meantime there is serious damage being done to businesses like Hobby Lobby and nonprofit charitable organizations." The Hobby Lobby case is just one of many before the courts over the religious exemption aspects of the law. The case represents by far the biggest for-profit group challenging the health care mandate. After this piece of the law went into effect in August, religious nonprofits were given "safe harbor" of one year from implementing the law. "In effect, the president is saying we have a year to figure out how to violate our consciences," Cardinal Timothy Dolan, the Archbishop of New York, said in January when the administration announced the move. Dolan's New York Archdiocese won a victory this month in its legal battle against the administration and the mandate. In May it sued the government in federal court in Brooklyn over the mandate, saying it "unconstitutionally attempts to define the nature of the church's religious ministry and would force religious employers to violate their consciences." The government moved to have the case dismissed. On December 4, Judge Brian M. Cogan denied the government's motion to dismiss the case, saying the government's promise of changes to how it will implement the law were not enough to merit dismissal. "There is no, 'Trust us, changes are coming' clause in the Constitution," Cogan wrote in in his decision to let the case proceed. |
  About this blog
The CNN Belief Blog covers the faith angles of the day's biggest stories, from breaking news to politics to entertainment, fostering a global conversation about the role of religion and belief in readers' lives. It's edited by CNN's Daniel Burke with contributions from Eric Marrapodi and CNN's worldwide news gathering team.  |
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This is stupid, just cancel their group insurance, the money the company saves could be donated to the catholic church or the republican party.
I believe the Act requires large companies to provide health care. If indeed they could just cancel their insurance their employees would have to leave since then they would have to get their own insurance & it would have to be paid for somehow. All the wiggle room was carefully eliminated. It's either obey the law or pay the fine.
Idiot.
Nothing but an employer trying to dictate morals to its employees just as they try to accuse the government of the very same thing.
The Deeply Religious mind is a peculiar thing. Just look at the atrocities the Taliban inflicts on innocent school girls.
All of you sound like rednecks and low life! Frankly I don't understand why birth control has become front and center any more than any other health issue. Need erectile dysfunction drug?
Shows what you know. That's how many got into difficulty in the first place.
So when do the Masters get the wunnerful healthcare that their Servants in congress get? A santa klaus for another day?
Should the government take the children away from the parents who can not afford them? I think since the pill will be available to all women, we should hold them accountable for supporting unwanted babies, they can either put it up for adoption or Russians can come over to adopt.
The amount of corruption in ye ol' USA is so bad americultians can't adopt from Russia anymore. That is some stinketh piled high even for their standards. Why would you think they want our stinkin' corrupt babies?
I have a better idea, practice some self control and use birth control of some form and then you wouldn't have the need for the morning after pill. Then there will be fewer unwanted children.
Birth control isn't 100% effective. People do make mistakes. They also smoke, drink, and do other things that might not be good for them, but companies aren't allowed to deny them coverage as a result.
Yes Tom Tom you are right it's not 100%, but if a person chooses to take the morning after pill they should do it with there own money. Hobby Lobby has the right to not pay for something that is against there belief just like someone has the right to take it. If they don't agree with Hobby Lobby they don't have to work there.
It's "their," simple Simp. And no, the company doesn't get to decide to deny that coverage. That's the law until the SCOTUS rules otherwise. Tough toenails.
RY. There are a whole list of things that an employer may not approve of: blood transfusion, organ transplant, smoking, drinking alcohol, drugs of any kind, etc. Should an employer be able to dictate what healthcare you get?
Why aren't people looking at the big picture. Birth control is CHEAPER than children. If the parents cant afford the kid, the govt. cant afford the kid, why are we having the kid? Force her to have a child she cant afford will more than likely lead to public assistance. You want to cut govt spending, cut out children.
Hobby Lobby does not have a problem with birth control it's the morning after pill they are against.
So, they will be mandated to take the pill every month? Who is going to make sure they take it? What happens if they do not take it and have more children they can't afford.
@RY..............When someone takes the morning after pill, they don't know if they are pregnant! So how could it be equated with abortion? Because a woman has s ex, that doesn't automatically mean she will get pregnant.
Oh, i got it, let the government fine the $100.00 per day per child until they get rid of it
Sadly the unprecedented redistribution of America's wealth into a few hands makes the cost of having children very much an issue. If corporate America had not driven down the income of average working Americans so low they would be able to have & support as many children as they want. The women could devote themselves to the children because then two incomes would not be essential to maintaining a household. Hobby Lobby is one of those greedy corporations no matter what high minded religious mumbling they do.
@ Ken Margo I think some people were thinking Hobby Lobby is wanting to take away coverage for birth control and it is just for the morning after pill. They are not telling other people not to take it, it goes against their beliefs to support it. They shouldn't be forced to. I have family that works for them and they are a very good company and they pay good for entry level positions.If someone has a problem with that one issue they don't have to work there.
@ Sharp you call them greedy,they are far from greedy. You are only saying this about them because of this one conviction that their family has. My dad family and friends have worked for them for over 30 years and they have been nothing but good to the people that work for them. While others are cutting pay, they increased pay for cashiers, stockers and entry level workers to 12 an hour with hopes of even paying more than that. They offer health insurance, Sundays off and paid holidays off with Christmas bonuses. I know that they have also helped people in the company that were displaced by storms and give to many charities. They don't sound to greedy to me!
@RY................Your story brings tears to my eyes. The problem is that NOT ALL COMPANIES are like that. If you don't believe me, ask people whose company moved to another country. Christians complained about abortions, when the prez tries to do something about that, you still whine. Nothing this man does will make you happy even if it does save you money not having to help care for unwanted children.
What they're "against" is irrelevant, RY. I don't care what they're "against," when it's legal and the law says they must provide insurance that covers it. Tough for them. They can either pay the fine, or leave the country and run their business elsewhere.
I think the big story here is, how does Hobby Lobby stay in business in the first place?
It is ironic that the Greens' objection is based on bad science in as much as their faith is based upon no science at all.
Well, I hope Hobby Lobby sticks to their guns because the country needs the money. We have separation of church & state. This means you can believe whatever you want as long as you obey the law. Their viewpoint is a strong & in their eyes a righteous stance. However their employees have rights too & Hobby Lobby has no right to trample those rights.
That's not what separation means . . . separation means that the government cannot impose a religion upon the people. Furthermore, Hobby Lobby has every right to deny funding what they believe amounts to an abortion. They are not trampling on anyone's rights. If a person does not want to get pregnant, it is their responsibility to make sure they don't. Ortho-tricyclen at Wal-mart is only $4.00, and free at the health department.
The problem is, if this company gets away with this, then a company run by Christian Scientists can refuse to provide any insurance because they don't believe in doctors period. Ant the Jehova Witnesses could refuse to let their employees give or receiev blood, etc. Religion cannot be allowed to dictate how employees in a private enterprise are treated.
Bravo! Well said.
The problem with the religious type of mind is that it is inherently bossy. A person with strong beliefs also believes in,"My way or the highway." Untold misery has been caused by this type of belief over the Milena; The Inquisition, the Taliban The Papacy vs King Henry & those are only a few of the major incidents. After all that the founding fathers in their wisdom decided that church & state should be separate. In this they copied the Chinese whose Emperors allowed any sort of worship (Taoism, Buddhism & Confucianism are the main ones) but no opposition of the Emperor's secular authority was tolerated. It is a good system & I advise Hobby Lobby to return to the fold as a loyal American business regardless of the owner's personal beliefs.
All religion aside....
1.) If you owned a business to what end would you want the government telling you what you must and must not offer your employees?
2.)I don't think Hobby Lobby is saying that the employees are not able to get the morning after pill, but only that they do not want to foot the bill for it.
3.) What provisions would you like to see in place to protect a person when a government regulation is in violation of their conscience?
What the corporation "wants" the government to be able to "tell it" is irrelevant. If it operates here in the US, it must abide by our laws, and that is why we have courts. The SCOTUS will make the final determination, and Hobby Lobby doesn't have to like it. It benefits by operating here and must abide by the law. Its option if it doesn't like the law is to move elsewhere.
Why should a corporation get to determine what is and is not covered?
Private health insurance is almost entirely provided through employers in this country. That's the system we have. Your health insurance is a part of your compensation, a trade-off from your salary in exchange for health care, amplified by group discount. Telling employees that you refuse to provide coverage for contraception and abortion through the insurance you provide is morally equivalent to telling employees that they can't spend their salary on contraception or abortion.
It's much less expensive for Hobby Lobby to foot the bill of a $40 morning after pill than for the insurance on a new baby that one of their employees just had. This isn't a fiscal choice they're making, it's a moral choice that they're trying to impose on their employees who may or may not have the same moral code as their employer. As a corporation, I would rather shell out a million dollars worth of morning after pills than have to pay for a week of not complying with government mandate. If i were a business owner, this is the stance I would be taking.
This is a battle of ideology that Hobby Lobby is trying to force on the grounds of legal justice. It's just not a rational line of thought, period. They're not concerned about money, they're concerned about the fact that others are making choices they're not comfortable with, regardless of actual legality.
Just to recap:
Morning after pill: one time, $40-50 (or less, possibly?)
Insurance for a family of two: $150+/month
Not providing gov't mandated care: $1.3 mil/day
If anyone doubts this is a religious war trying to be waged in the courts, they should check their numbers.
Thank you Hobby Lobby for standing up for what is right. Also, I applaud you for not being open on Sundays.
@angela..................Suppose you have an Illness and your company says they don't want to cover you? How would you feel then? Would you just slink off and suffer? Holier than than thou phonies like you are pathetic.
Shut your hole, Angela. In fact, shut all of them.
T0 'Blessed' who wrote "Why should a corporation get to determine what is and is not covered?"
It's because the corporation pays for the coverage!
If employers would have treated employees fairly from the beginning we wouldnt have unions nor would we have federal laws imposed on employers. Hobby Lobby is breaking the law. Period. If they dont like the law then they should work to get it changed not insist upon violating it. I would love to be free to violate laws I do not agree with. Hobby Lobby and the Green family are typical of the christian hypocrites. They choose to openly violate laws and squeal "religious freedom" when they get caught. Their hypocrisy and egotistical profiteering make me sick.
Ken Margo is equating pregnancy with a dire illness....so sad
@DWWAJW.......................The situation is the same. You want coverage and the company "chooses" for you. Yet you have fools like you talking about the govt. taking away your rights.
Since when does Hobby Lobby pay for the entire cost of health insurance for its employees?
Devolution was decided in the 1830s. Corporations enjoy the protection of federal laws. Now, obey them.
If insurance pays for Viagara for men, then why not pay for the morning after pill for women?
It is a medical thing: you don't want to mix upper with downer
Not all insurance pays for Viagra.
Scott
Wrer it so. Besides... if religious groups are so hung ho on eliminating things such as the morning after pill, then why don't they lobby in force for insurance companies to pay for Viagra!? It HELPS with pro-creation. Because they're only out for their own cheesy agenda. Besides, in America religion is more of a business and a political persuasion than it is anything that has to do with any god. Certainly not the one they follow to be sure.
The problem in this article is that a business doesn't have religious faith. People do, sure, but corporations do not.
So this company has a number of choices – first, they can opt to not provide insurance, incurring the fines; second, to not provide insurance that provides the coverage required – and again incurring the fines; third – to provide insurance, with the insurance company paying for the disputed coverage, and no fines or penalties due; or fourth, just provide it and fight the issue in court. Two of four choices yield no fines.
Oh, and for Mardell, the Christian Bookstore – that could be spun off as a non-profit and apply for the exemption based on the religious faith of the firm's management, its employees and its customers.
No need for non-profit conversion. Corporations do NOT pay any tax currently 😉
I always laugh whenever I hear/see a discussion regarding abstinence from the religious right. I grew up in Philly, and recall that, as a right of passage, upon graduating High School....All the new adults would go on a 1 week pilgrimage to the Jersey Shore. There were actually 2 seperate weeks "celebrated" in Jersey. The first week of June was the Public-School "senior week", and the 2nd was Catholic-School "senior week". It was WELL known that you had a FARRR better chance of getting lucky on Catholic week, than public week. Tell a kid what he/she cant do....and I'll tell you what that kid is gonna do!
Nowadays, my wife (a former "good" Catholic Philly girl...NOT!) is a nurse in an OB/GYN clinic here in the Southern US. There are pregnancies here as young as 11 and 12 years old among the Bible BANGIN, lilly white, middle class youngsters here. It's a SHAME these kid's parents REFUSE to face reality. It's a shame they are so stupidly backwards that they would rather ruin 2 generations of children (based on hysteria created by a 2000 year old "book") then GET REAL ON CONTRACEPTION.
To heel with Hobby Lobby! Let them go do business in VIETNAM if they no longer want to live under American laws. The American people have voted RESOUNDINGLY to move forward.
Hobbly Sloppy has not yet figured out a better place to do biz than here in the US, yet ...
It's not the birth control pill Hobby Lobby has a problem with it's the morning after pill.
All corporations in America should refuse Barack Stalin's policies.
Barac had made an offer to the corporations that they can't refuse: mo' $$$$$$$
Americans must band together to oppose Obongo's Stalinist takeover.
That's the answer...deny Barack Obama's policies and bring more unwanted children in to your already impoverished country. So good to see you religitards have it figured out and know what is best for everyone else!
And instead accept your christian BS policies....I don't think so
Concur
Perhaps a theocracy is more your speed?
what an As_sHole statement! You should have been alive during Stalin's reign or better yet under his control and you would NEVER be making idiotic statements like that.
Racist & Fascist. You have no idea what Christianity is all about. Fascism is a devil worshiping Wikken.
Looks like CNN and their fanatic Stalinists continue to assault on Christian Americans. What a shameless group of hypocrites.
Awww. Generalize much, briber? Poor little J Briber outside of his comfy zone and needs to go poopy. Poor Briber. Awwww.
no I'm quite enjoying watching obama flush the country just as we knew he would
If this were an Islamic company insisting employees abide by Islamic law you'd be the first in line to condemn it.
And ironically you wouldnt have said a word, along with CNN.
@bribarian
Having fun trolling?
There is no such thing as an Islamic company. Further, there is no such thing as a Christian company. Buncha silly RW weirdos. Go on back to Bible school ya buncha brainwashed ninnies.
Maybe Hobby Lobby should move somewhere where religion is entwined with the government .... let's think of them all ... Iran all of the "stans"
Try opening stores where the country embraces theology over separation of church and state. It seems like your values are more invasive; but your mind is so small. How can you compare the united states to Stalin ? Where are the political purges.
Corporations are not people, therefore they have no rights. They have laws that they must follow, period.
Well put.
You are not factually correct in that statement. The Supreme court has ruled that Corporations do sahre many of the rights of individuals. You may disagree with that ruling, but it is currently the law.
Does Medicare or Medicaid pay for any woman's contraception even the morning after pills? I really don't know and would like someone who knows to tell me!
NO ONE is forcing the employees to abort babies. A CORPORATION is trying to force it's opinion on it's employees. And why does a CORPORATION need to be religious? And why is everyone talking about wellfare? If you have a job a Hobby Lobby, you're probably NOT on wellfare. Sure, you can argue "if you don't like the companies policies then don't work there" but in some other article you'll be saying "take whatever job you can and get off wellfare"... You people make ZERO SENSE. NO ONE is forcing anyone to take a pill, we're forcing the CORPORATION to stop forcing it's opinion. Aren't there laws that say you can't discriminate based on faith? Guess many don't care as long as their faith is the one supported. Imagine if you were denied employment because you weren't athiest? Or weren't hired because you believed Christ is Savior, but the Corporation was run by Jewish people who don't believe that?