Under the banner of the recently formed Catholic Benefits Association, the entities contend in a class action lawsuit filed March 12 that the mandate's requirement that they provide health insurance coverage for contraceptive drugs, abortifacients, surgical sterilizations and related counselling is contrary to the First Amendment's free exercise, establishment and free speech clauses.
The mandate — under rules issued by HHS — requires nearly all employers to provide such coverage for their employees in their company health plan. It includes a narrow exemption for some religious employers that fit certain criteria.
The lawsuit said the regulations under the Affordable Care Act are discriminatory because some religious entities and ministries are exempt while others are not. The lawsuit filed in the U.S. District Court for the Western District of Oklahoma seeks a preliminary injunction to block the mandate as it applies to association members.
Named as defendants were Kathleen Sebelius, HHS secretary; Thomas E. Perez, secretary of the Department of Labour; Jacob J. Lew, secretary of the Department of the Treasury; and each of those departments.
Attorney L. Martin Nussbaum, a partner in the law firm Lewis Roca Rothgerber, represents the plaintiffs. Based in Colorado Springs, Colo., he has represented archdioceses and dioceses and various Catholic and religious entities in legal matters largely revolving around religious freedom concerns for more than a decade.
Baltimore Archbishop William Lori, chairman of the association's board of directors, said the new organization offered Catholic entities the best option to legally challenge the mandate.
"The CBA gives a vehicle for many dioceses that would not find it opportune to bring suit to do so in a manner that has a higher possibility of success. That's very important. I also think it is a further expression of our desire to promote and defend religious freedom not just in the abstract but indeed in a very real issue that affects Catholic employers and Catholic employees," he told Catholic News Service March 12.
"We will understand how to help Catholic employers to obtain morally sound insurance in the most cost effective and least disruptive way."
In a statement released as the lawsuit was filed, Archbishop Paul Coakley of Oklahoma City said Catholic entities across the country objected to the mandate.
"We as Catholics, regardless of the corporate structure within which we work, cannot in good conscience provide employees with insurance that covers contraception, abortifacients and sterilization, which undermine the dignity of the human person and the sanctity of human life and also jeopardizes the physical and mental health of those who use them in untold ways," the statement said.
"It is my prayer that the courts will recognize that the federal government has no clear and compelling public interest that justifies burdening our free exercise of religion by requiring us to pay for conscience-violating drugs and procedures."
Nussbaum said the association was formed in January after months of discussions. Its subsidiary, the Catholic Insurance Co., was incorporated shortly before the lawsuit was filed.
Nussbaum declined to comment about the case but said the new Catholic association and insurance company were started in response to the requirements of the Affordable Care Act and the ongoing legal cases challenging the HHS mandate filed by numerous religious organizations.
The Catholic Benefits Association is comprised of Catholic employers "committed to providing life-affirming health coverage consistent with Catholic values," the organization's web site said.
"This is an extremely viable option to provide good quality health care at competitive prices that is compliant with Catholic teaching," Nussbaum said of the association's insurance component.
Four archbishops make up the association's board of directors: Coakley, Lori, Archbishop Charles Chaput of Philadelphia and Archbishop J. Peter Sartain of Seattle.
In addition to allowing Catholic entities to offer health care coverage in line with Church teaching, the association also will provide legal advocacy to protect the religious liberty of its members, the web site said.