Story highlights Employers may now have more leeway to withhold birth control coverage on religious grounds

Policy experts argue that this could open the door to hundreds of employers dropping coverage

(CNN) In a blow to Obamacare's controversial contraceptive mandate, employers may now have more leeway to withhold birth control coverage on religious grounds, according to new rules issued by the US Department of Health and Human Services on Friday.

The new rules continue the undermining of the Obamacare mandate that requires birth control be covered with no co-pay as a preventive service. This could impact many of the millions of women who now receive contraceptives at no cost under this provision.

The rules would let a broad range of employers -- including nonprofits, private firms and publicly traded companies -- stop offering contraceptives through their health insurance plans if they have a "sincerely held religious or moral objection," senior agency officials said on a call about the implementation and enforcement of the new rules.

Health and Human Services officials said the new rule would have no impact on "99.9% of women" in the United States. It is basing that percentage on the 165 million women in America, many of whom are not in their child-bearing years.

The agency calculated that at most, 120,000 women would be affected: mainly those who work at the roughly 200 entities that have been involved in 50 or so lawsuits over birth control coverage.

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