An appeals court in Virginia rejected Liberty University's attempt to overturn Obamacare.
Liberty argued the health care law is unconstitutional because it forces religious employers to provide coverage for abortion-inducing drugs.
But the 4th U.S. Circuit Court of Appeals unanimously rejected that claim.
"Plaintiffs present no plausible claim that the act substantially burdens their free exercise of religion, by forcing them to facilitate or support abortion or otherwise," Judge James A. Wynn Jr. wrote in the opinion.
He added that the law "allows an individual to obtain, and an employer to offer, a plan that covers no abortion services at all."
Liberty attorney Mat Staver said he will take the case to the U.S. Supreme Court.
"At least the court reached the merits and did not try to dodge the issues on procedural or standing grounds," he said. "This clears the way to go to the U.S. Supreme Court, which will be the final stop anyway."