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During oral arguments in the U.S. Supreme Court on Tuesday which focused on whether the contraceptive mandate in the Affordable Care Act violates the free exercise of religion, Justices Sonia Sotomayor and Elena Kagan suggested employers who have moral objections to birth control should not provide health care coverage for their employees.
“But isn’t there another choice nobody talks about, which is paying the tax, which is a lot less than a penalty and a lot less than — than the cost of health insurance at all?”
“Those employers could choose not to give health insurance and pay not that high a penalty – not that high a tax,” Sotomayor said.
Clement said Hobby Lobby would pay more than $500 million per year in penalties, but Kagan disagreed.