Michigan-based Eden Foods, an organic-foods company that markets to food co-ops around the country, sued the federal government to gain an exemption from the Affordable Care Act's employer mandate for covering the cost of contraceptives—and lost. But in the wake of the U.S. Supreme Court's "Hobby Lobby" ruling, the case has been revived in the Sixth Circuit Court of Appeals, and politically liberal food co-ops are deciding whether to boycott Eden.

Ballard Spahr partner Jean C. Hemphill told The Inquirer that the Obama administration has come up with a compromise that might render the "Eden question" moot. Businesses such as Eden that want an exemption from the contraceptives mandate would be allowed to just notify the government of their religious objections. "They don't have to fill out any forms," Ms. Hemphill said. "They just have to tell the government who their insurer is and the government will make the arrangements with the insurer."

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