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 * Litigation


NY TOP COURT REJECTS CHURCH CHALLENGE TO ABORTION COVERAGE LAW

By Brendan Pierson
May 21, 20249:27 AM HSTUpdated 30 min ago
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A view of the New York State Court of Appeals building is seen in Albany, New
York October 12, 2011. REUTERS/Hans Pennink/ File Photo Purchase Licensing
RightsNew Tab, opens new tab
May 21 (Reuters) - New York's highest court on Tuesday ruled that employers'
health insurance plans have to cover medically necessary abortions, rejecting a
lawsuit by the Roman Catholic Diocese of Albany claiming that the law's
exemption for religious employers was too narrow.
The New York Court of Appeals found that the rule, passed in 2017 by the state's
Department of Financial Services (DFS), did not violate religious employers'
freedom because both the rule and its religious exemption were neutral and
generally applicable to all employers.
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The 2017 rule was made into law by the state legislature in 2022, though the law
was not challenged in the lawsuit.
"We continue to believe that the regulatory action by the state, as well as
subsequent legislative action, requiring religious organizations to provide and
pay for coverage of abortion in its employee health plans is unconstitutional
and unjust," Dennis Poust, executive director of the New York State Catholic
Conference, said in a statement. He said the Diocese would appeal to the U.S.
Supreme Court.
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"DFS's actions have ensured that women in New York have control over their
reproductive choices, and that insurers cover abortions and contraceptives with
no copayments, deductibles or any out-of-pocket costs," DFS Superintendent
Adrienne Harris said in a statement.
The religious exemption in the rule applies to non-profit entities whose primary
purpose is the "inculcation of religious values" and that primarily employ and
serve people who share its religious beliefs.

The Diocese alleged that this exemption was too narrow because it would not
include religious organizations with a broader purpose than inculcating
religious values, such as serving the poor, or that employed or served a large
number of people who did not share their religion.
The Court of Appeals previously rejected the diocese's challenge in 2020, citing
an earlier case upholding a contraception coverage requirement with a similar
religious exemption.

In June 2021, the U.S. Supreme Court ruled that Philadelphia could not refuse to
place foster children with a Catholic agency that turned away same-sex couples
as would-be foster parents. It then ordered the New York court to reconsider the
abortion coverage case in light of that ruling.
The court said in Tuesday's decision that the Supreme Court's ruling did not
change the outcome because it was narrowly focused on the facts of that case,
and did not overturn the longstanding precedent that neutral, generally
applicable laws can sometimes restrict religious expression.

Republican-led states have banned or restricted abortion in the wake of the
Supreme Court's 2022 ruling eliminating a nationwide right to abortion.
Democratic states have moved to safeguard and expand abortion access.

Jumpstart your morning with the latest legal news delivered straight to your
inbox from The Daily Docket newsletter. Sign up here.

Reporting By Brendan Pierson in New York, Editing by Alexia Garamfalvi and David
Gregorio

Our Standards: The Thomson Reuters Trust Principles.New Tab, opens new tab

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Brendan Pierson

Thomson Reuters

Brendan Pierson reports on product liability litigation and on all areas of
health care law. He can be reached at brendan.pierson@thomsonreuters.com.

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