Dealer Group Wins Lawsuit Over ACA Contraceptive Mandate

A dealership owner in Minnesota has won a lawsuit and will not have to provide insurance that offers certain forms of birth control under the Affordable Care Act. Doug Erickson, the owner of Hastings Automotive and Hastings Chrysler Center, won their suit based on a high-profile precedent.

This June, the Supreme Court ruled 5-4 that Hobby Lobby didn’t have to provide certain types of insurance to its employees if the addition of birth control to that coverage presented a problem on religious grounds. The reasoning was that to demand such would violate the Religious Freedom Restoration Act of 1993. Hastings won the case as their judge ruled based on what occurred with Hobby Lobby. According to Pioneer Press U.S. District Judge, Paul Magnuson, ruled the dealer group, “cannot be required by federal law to provide his employees with health insurance that covers contraceptive methods, sterilization procedures, and related patient education and counseling to which plaintiffs object on religious grounds.”

Doug Erickson told the Pioneer Press he did what he did out of principle. Erickson explained, “It has long been my conviction to run my business according to the teachings of my faith. I am grateful that the court’s ruling today allows me to remain obedient to the convictions of my faith without compromising my beliefs to obey government.” Erickson, who has been providing insurance to his dealership staff since 1989 discovered the contraception coverage that he didn’t agree with upon review of insurance changes after the ACA passed back in 2012. Erickson’s legal council certainly has his back. Jeremy Dys, senior council for the legal group, which represented Erickson, feels that the decision will have far reaching impact. Dys said, “The court’s ruling reaffirms the constitutional principle that every American is free to live and work according to their beliefs, without fear of punishment by their government.”

For dealers, how do you feel about this ruling? Do you support Erickson in his running of his business based on his religious beliefs or should he separate the two? Has the Affordable Care Act impacted the price or quality of insurance for your staff?