Many groups here in Fort Wayne say the rule violated their religious freedom.
The announcement came late this afternoon from the white house.
Most groups say they need time to read the proposed changes-
But so far, it looks like a victory for them.
White House Press Secretary Jay Carney made the announcement today: an opt-out for religious employers and non-profits from providing birth control to women.
The proposal would allow women to get contraceptives at no charge directly from insurance companies, and at no cost to their employer.
It's a U-turn from the current rule, which would force these employers to provide birth control, or face steep fines.
"In outlining it, he set two important criteria- one, we had to ensure that women have access to preventive services like contraception, and that the policy also respects religious beliefs," carney says.
Human and Health Services Secretary Kathleen Sebelius says the proposal works for both sides.
National group Catholics United also hailed the plan, saying it was a victory for both the president and for Catholics across the country.
Here in Fort Wayne, local groups are still digesting the news.
The Diocese of Fort Wayne South Bend issued a statement today, saying:
"At this time we are reserving comment regarding the HHS revised ruling."
Spokesperson Sean McBride says the Diocese needs time to review the full proposal before it can comment further.
I spoke with several other religious employers and women's health groups today, all of which also declined comment.
Numerous groups have filed lawsuits challenging the mandate forcing contraception coverage, which would start August 1st.
Now, the government is taking public comment through April 8th,
And then could decide to make this change permanent- potentially ending the controversy.
This story broke this afternoon, after many of these groups had closed.
We'll continue to follow this story into next week, and we expect some of them to speak out.
But we want to know what all of you think about the proposed change.
Let us know on our Facebook page, http://www.facebook.com/WFFTLocal