Supreme Court justices are weighing whether to strike down a provision of the Affordable Care Act that prevents companies from discriminating against their employees on the basis of religious beliefs, according to the Wall Street Journal.
Justice Elena Kagan is expected to rule on the matter soon.
The law, known as the Religious Freedom Restoration Act, was enacted after a gunman shot and killed nine people in a Colorado Springs Planned Parenthood on January 6, 2015.
It allows for discrimination against people based on their sexual orientation or gender identity, and it bars most businesses and public entities from denying health insurance coverage to people based solely on their religious beliefs.
The court is expected on Monday to hear arguments about the law from businesses and the ACLU, which filed a lawsuit challenging the law last year.
The case is being closely watched by conservatives.
The Court has been under pressure to strike it down in the past, and last month, the court declined to hear a case that was also challenging the religious freedom law.
If the Supreme court upholds the law, businesses that refuse to provide contraceptive coverage to their employees could be able to claim it was motivated by religious beliefs and could therefore violate their free speech rights.
The Obama administration, however, said the law does not amount to a violation of the Religious Land Use and Institutionalized Persons Act, a 1954 law that bans discrimination on the grounds of race, color, religion, sex, disability, or national origin.