---
title: "Hobby Lobby Fallout: The Government Wants Your Comments on Employer Coverage of Contraception"
date: 2014-09-04T23:23:28-04:00
author: OBOS Admin
canonical_url: "https://ourbodiesourselves.org/blog/hobby-lobby-define-closely-held-corporation"
section: Blog (Archive)
---
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[From the Archives of Our Bodies, Our Blog](/blog)# Hobby Lobby Fallout: The Government Wants Your Comments on Employer Coverage of Contraception

By Rachel Walden • September 4, 2014

Please note: This entry -- originally posted at [Our Bodies, Our Blog](https://ourbodiesourselves.org/blog) -- has not been updated since the publication date listed above.

![Hobby lobby protest by light brigading](data:image/png;base64,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)Hobby Lobby protest in Madison, Wis., following the Supreme Court decision in July 2014 / Photo: [Light Brigading](https://www.flickr.com/photos/40969298@N05/14607482403) ([cc](https://creativecommons.org/licenses/by-nc/2.0/)) 

In the wake of this summer's Supreme Court's [Hobby Lobby decision](/2014/07/supreme-court-on-hobby-lobby-buffer-zones/ "SCOTUS: Hobby Lobby"), which allowed for closely held corporations to refuse, based on religious objections, to provide contraceptive coverage as part of their employee's health insurance, there is [now the question](http://go.nationalpartnership.org/site/News2?abbr=daily2_&page=NewsArticle&id=45460 "Regulators Seek To Define 'Closely Held Corporation' for Contraceptive Coverage Purposes") of what exactly it means to be a "closely held corporation."  
  
How regulators define such corporations is important, because it will determine which for-profit companies can refuse to provide contraception coverage -- or refuse coverage for any other services they oppose based on religious beliefs.  
  
Late last month, a [notice was published in the Federal Register](https://www.federalregister.gov/articles/2014/08/27/2014-20254/coverage-of-certain-preventive-services-under-the-affordable-care-act "Coverage of Certain Preventive Services Under the Affordable Care Act") that suggests a couple of approaches to defining "closely held corporation." [Public comment is requested](http://www.regulations.gov/#!documentDetail;D=CMS-2014-0115-0002 "Submit comments: Coverage of Certain Preventive Services under the Affordable Care Act") on whether these definitions are appropriate.  
  
Both approaches would define a closely held corporation as a company that is not publicly traded (i.e., is not selling shares/stock). The difference between them is that the first proposed approach would mandate that a closely held corporation has fewer than a specified number of shareholders or owners, while the second proposal would mandate that a specified *fraction* of the ownership interest is concentrated in a limited and specified number of owners.  
  
Both of these approaches are intended to ensure that companies claiming this religious exemption really are "closely held," as they are controlled by a limited number of people.  
  
Comments are also being solicited on whether to require companies to document their decision-making process and disclose that they're refusing coverage based on religious objections.  
  
Public comments are also needed on any additional steps the government should take to help ensure coverage of the full range of FDA-approved contraceptives without cost sharing for people whose health plans are provided by these corporations.  
  
Comments can be [submitted through Regulations.gov](http://www.regulations.gov/#!documentDetail;D=CMS-2014-0115-0002 "Regulations.gov - Coverage of Certain Preventive Services under the Affordable Care Act") and are due no later than 5 p.m. on Oct. 21, 2014.  
  
For additional exploration of the definition of "closely held," check out:  
  
- 
- New York Times: [In Hobby Lobby Ruling, a Missing Definition Stirs Debate](http://dealbook.nytimes.com/2014/09/02/in-hobby-lobby-ruling-a-missing-definition-stirs-debate/?partner=rss&emc=rss "NY Times - Steven Davidoff Soloman")
- NPR: [Hobby Lobby Ruling Raises A Question: How To Define "Closely Held"?](http://www.npr.org/2014/07/01/327369386/hobby-lobby-ruling-raises-a-question-how-to-define-closely-held "All Things Considered - Yuki Noguchi")
- Wall Street Journal: [Hobby Lobby Ruling Raises Question: What Does "Closely Held" Mean?](http://online.wsj.com/articles/hobby-lobby-ruling-begs-question-what-does-closely-held-mean-1404154577 "Wall Street Journal - Stephanie Armour and Rachel Feintzeig")

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