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Ruling won’t alter birth-control coverage for many

JOYCE M. ROSENBERG
AP Business Writer

NEW YORK (AP) — Business owners who don’t want to pay for their employees’ birth control are ending that coverage after the Supreme Court said they could choose on grounds of religious belief not to comply with part of the health care law.

Some owners are already in touch with their brokers in the wake of Monday’s ruling.

Triune Health Group Ltd. wants to know how soon it can change its coverage to stop paying for all contraceptives, said Mary Anne Yep, co-owner of the Oak Brook, Illinois company that provides medical management services.

“We were ready to go when we heard the decision,” she said. Triune, which has 80 employees, had filed lawsuits against the U.S. government and the state of Illinois because of requirements that they pay for contraception.

The Supreme Court ruled that some businesses can, because of their religious beliefs, choose not to comply with the health care law’s requirement that contraception coverage be provided to workers at no extra charge. The 5-4 ruling has the Obama administration looking for another way to provide birth control for women who work for those companies.

The ruling applies to businesses that are closely held, generally defined as having five or fewer individuals owning more than 50 percent of the company’s stock. By some estimates, 90 percent of businesses are closely held and employ about half the nation’s labor force of more than 155 million.

While employers are not yet required to provide insurance under the health care law, many closely held companies do, and under the health care law, insurance is required to include contraceptive benefits. However, it’s not known how many closely-held companies offer insurance, how many workers they have and how many companies plan to stop paying for contraception.

But it’s likely many companies will continue providing coverage for birth control, which would reduce the number of affected workers. A survey by the Kaiser Family Foundation found 85 percent of large employers already paid for contraceptives before the health care law required it. Many owners believe it’s an important benefit that helps them attract and retain good workers.

Even employers who want to opt out of some forms of birth-control coverage see covering others as important.

“We want to provide for good health care for our people. We just don’t want to fund abortive procedures,” said Mike Sharrow, owner of C12 Group in San Antonio, with six employees. His company, which provides faith-based counseling for business owners, has always paid for what he calls traditional forms of contraception, such as birth-control pills.

Business owners interviewed by The Associated Press that don’t want to pay for contraceptive coverage said their insurers were still trying to figure out how to change their policies. It is possible employees might still be able to get birth-control coverage through their plans, but pay for that portion of their insurance themselves.

The contraceptives at issue in Monday’s decision are two known as morning-after pills, the emergency contraceptives Plan B and ella; and two intrauterine devices, which are implantable devices inserted into the uterus to prevent pregnancy. Many owners objected to them because they believe they may work after conception occurs. However, on Tuesday, the court left in place lower court rulings in other cases that allowed businesses to refuse to pay for all methods of government-approved contraception.

The case decided by the Supreme Court involved two companies, Hobby Lobby and Conestoga Wood Specialties Corp. About 50 others also filed suit against the health care law’s contraception requirement. Hobby Lobby has more than 15,000 full-time employees while Conestoga has about 950. Hobby Lobby is by far the largest employer among the 50 or so for-profits that sued.

Some of the companies that have sued received court injunctions allowing them not to pay for birth control; the Supreme Court’s ruling is expected to allow them to continue that policy.

Weingartz Inc., which has five stores in Michigan selling lawn mowers and other outdoor equipment, stopped paying for all contraception, except when medically needed, since it won an injunction.

“We don’t believe anybody else shouldn’t have access to it. We just can’t pay for it,” said Dan Weingartz, the company’s president. The company has about 170 employees.

But Joe Holland Chevrolet in South Charleston, West Virginia, and Hastings Automotive Inc. in Hastings, Minnesota, opposed post-conception forms of birth control only, said Matt Bowman, an attorney representing both auto dealerships.

“Our clients have no problems with things that are truly contraceptive,” Bowman said.

Christian publisher Tyndale House Publishers Inc., which also filed a lawsuit, expects the Supreme Court ruling to clear the way for it to stop paying for morning-after pills and IUDs.

“We believe that those family businesses should have the religious freedom not to offer abortion-causing items through their employee health care program,” Tyndale CEO Mark Taylor said in a statement. The Carol Stream, Illinois, company publishes Christian books.

The businesses contacted by The Associated Press all said their greatest concern was the government forcing them to pay for something that goes against their religious beliefs.

“Framing this as an issue of contraception is wrong. It’s a battle against bullying by the government, telling us what to do,” said Yep, the Triune Health Group owner.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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