It seems that the President is moving to a fair and reasonable resolution to the issue of the HHS contraception mandate, which this blog has said we feel he has taken the wrong position. Under discussion is the Hawaii model in which a religious employer is allowed to exclude contraceptive coverage. However, in Hawaii the employer must inform the employee that they can obtain contraceptive coverage directly from the insurer, if they want it, and the insurer must offer coverage at the price difference between what if offers insurance with and without contraception (since the market price is rarely more, the employee usually pays nothing). The plan that is under discussion further tweaks the Hawaii plan so that it is the insurance company and not the religious employer that informs the employee of this benefit.
The Catholic Church in Hawaii has accepted the Hawaii plan when it was enacted in 1999. Given that reality, it seems that the even more accommodating proposal being discussed solves this problem.