Contraception Coverage

I'm not sure if this was covered in class, but here is an article about Contraception. The article is basically about how Obama's Administration will mandate "contraception coverage" into your healthcare plan. Catholics are standing up and saying that it "violates their rights to free exercise of religion". The problem arises when churches are exempted from this, but hospitals and universities are not. Here in Austin we have a non-profit "Seton Healthcare Family" hospital, they refused to give insurance that cover contraception since they are catholic affiliated. Do you guys think insurances should cover contraception? if so, should the insurance reduce the monthly fee if you choice not to pay for it?