A Solution to the Contraception Insurance Issue

The administration has signaled that it is looking for a compromise to the contraception insurance issue. How about this? Those employers who conscientiously oppose providing contraception insurance to their employees should not be able to profit from a religious exemption. Accordingly, the employers should be required to increase employees' wages by the amount the employers save because of a religious exemption.

The employer might not want to pay higher wages, but could have no serious religious objection to the requirement. Employees could use the money to purchase insurance for contraception if they wished or for other purposes at their option.

From the perspective of the administration, this proposal has a disadvantage. A major reason for requiring employers to include contraception as a part of their insurance was to encourage greater use of preventative services by employees. One way to mitigate this disadvantage would be to afford a tax deduction for the premiums required to purchase contraception insurance. The fringe benefit of insurance was not taxable in the first place. Indeed, from the perspective of the administration, it would make sense to make all contraception expenses tax deductible or, alternatively, even a tax credit. If the evidence showed that tax policy of this character would increase contraception, we could expect abortions to decline in turn. Of course, the Catholic Church would oppose any such tax policy on moral grounds, but it could not argue that the policy would violate its religious freedom.