Q&A with Vic Albert
High Court’s contraceptive ruling affects only certain companies
Q: The U.S. Supreme Court on Monday ruled that for-profit, closely held businesses could assert religious objections to the Affordable Care Act (ACA)’s contraceptive mandate to cover all FDA-approved contraceptives for most women without cost-sharing. What does the ruling mean for area employers?
A: The ruling applies only to for-profit, closely held companies whose owners’ religious or spiritual beliefs oppose the use of some or all contraceptives.
Q: What is a closely held company?
A: Closely held corporations often are owned and controlled by members of a single family. The IRS also defines a closely held company as a corporation that has more than 50 percent of the value of its outstanding stock directly or indirectly owned by five or fewer individuals at any time during the last half of the tax year. A closely held corporation can’t be a personal-service corporation. It’s estimated that closely held corporations comprise more than 90 percent of U.S. organizations, and are responsible for about 52 percent of all private employment.