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Omaha, NE -- A contraceptive compromise came Friday from the Obama Administration.   The pill and other forms of contraceptives would still be free to women no matter where they work.  However, in an effort to appease religious groups, especially Catholics, the President said those organizations can refuse to cover the cost and insurance companies will have to pick up the tab.

The whole debate has put Iowa in the spotlight. It's one of 28-states that has legislation requiring insurance coverage of contraceptives.  Iowa passed the controversial bill in 2000.  Iowa's catholic church railed against the legislation, a law that doesn't exclude any religion or business.

Iowa's Insurance Contraception Law is hardly known by people that Action 3 News spoke to in Council Bluffs on Friday. When we told them about it they took it in stride.  Ron Truitt said it didn't surprise him.   "The fact is all the 50-states can control a lot of things beneath the federal government," said Truitt.

Elise Bierce said she's not against President Obama's plan or Iowa's Law.  "It needs to be out there, far too many of them is having kids that don't need to," said Bierce.

Iowa requires all businesses including even churches and religious organizations to provide birth control options for their employees.  "Here in Iowa they didn't make any allowance for religious practices at all," explained Tom Chapman with Iowa Catholic Conference. 

Iowa's law goes further than the federal one...mandating business' plans  pay for any birth control device.

Chapman says he's happy the issue is in the news and believes government has no right to meddle in religion. Chapman explained, "The First Amendment calls for the free exercise of religion and we hardly think it's the free exercise of religion when we have to use money that's donated by Catholics to pay for sterilization and contraception."

Chapman will asses the federal law once it is finalized then decide if Iowa's plan contraceptive law will be re-worked.

In Omaha, Deacon Tim McNeil a spokesman for Archbishop Lucas, released this statement: 
              "The announcement today from President Obama signals a desire to engage in dialogue concerning the mandate. While there may be an openness to respond to some of our concerns, we reserve judgment on the details until we have them.  The Catholic Church hopes to work with the Administration to guarantee that Americans' consciences and our religious freedom are not harmed by these regulations."

Reported By: Liz Dorland, ldorland@action3news.com