So, the compromise solution that Obama tried to set up got rejected by the organization of Catholic bishops, but interestingly, two of the major ones (that actually provide public services) have already accepted it. I think this is actually a good thing, as the ones that reject his compromise cannot expect him to bend further since some of the less fervent Catholic organizations have already accepted it. Naturally, the conservamedia are howling in outrage at Obama's "tyranny", which is obviously anything but to people who actually pay attention to what's really going on.
More to the point, by focusing on the rights of Catholic organizations to refuse contraceptive coverage to their employees, these bishops and others are in the process of conceding the mandate for purely secular organizations. I'm sure they would prefer it differently, but the fact is that they can't argue that a Catholic worker should not even have contraceptive options presented in a health care plan, since nobody is forcing that worker to opt for those options or to pay for them if they don't use them.