Kathleen Sebelius, in a USA Today op-ed, lies through her teeth:
The public health case for making sure insurance covers contraception is clear. But we also recognize that many religious organizations have deeply held beliefs opposing the use of birth control. That’s why in the rule we put forward, we specifically carved out from the policy religious organizations that primarily employ people of their own faith.
This is untrue, and don’t think for a moment she doesn’t know it. Alan Sears explains:
The mandate explicitly does not exempt groups merely if they primarily hire members of their own faith. It forces those groups to violate their beliefs, unless they also primarily serve persons of their own faith. So a Christian hospital would have to turn aside Jews and Muslims at the door to be “religious enough” under the president’s aggressively secular policy.
POSTSCRIPT: Actually it’s worse than that. Just in case the exception still happened to apply to someone, it contains several other provisos as well, the sum of which is to ensure that no one will ever be exempt.