What is the recent argument about Catholic church having to fund birth control?

There is an argument going on with one of my FB friends and another of his friends. My FB friend (actually the son of a good friend of mine) is very against the Catholic church having to fund birth control, because it’s against their faith. The friend is writing that if the government funds the hospitals, then the law of the land supercedes all.

Can someone explain this argument to me? Do you agree or disagree that the Catholic hospitals should fund birth control? I can’t even jump into the argument because I don’t know much about it.