Such a step would be taken only if the employee, after being counseled, refused to get in line with Catholic teaching, King said. "It wouldn't be the first thing we do," he said.

The Catholic Church teaches that contraception is immoral because it diminishes God's role as the giver of life and interferes with the full giving of each spouse to the other.

All diocesan employees sign a morals clause in their job offers saying they will abide by Catholic teaching, so the diocese expects them to follow the prohibition against prescription contraception, King said. He acknowledged that the diocese has no way to police the issue - an employee would have to offer it up, he said.

St. Mary's Hospital, a Catholic-based institution, became self-insured eight months ago to avoid the law. But in a July 27 memo to employees, President Frank Byrne said the switch is proving too costly. Also, many hospital employees are having problems accessing specialty medical care, he said.

Beginning Jan. 1, St. Mary's will return to commercial policies provided by Dean Health Plan and Group Health Cooperative, said Steve Van Dinter, a hospital spokesman. Hospital employees do not sign moral clauses, he said.

Byrne said the hospital will work toward getting a religious exemption inserted into the law.