Thank you for making the point of respecting the human dignity even of those with whom one does not agree.  It is important that the more than 1 million people who work for Catholic universities, Catholic charities, Catholic hospitals be treated as people who have a right to make their own choices.  Many/most are hired for their job skills, not their faith.  Who knows how many are Catholic and, even if Catholic, how many agree with the teaching on contraceptives.  I see a government mandate on employer provided health insurance as an important step in assuring that citizens have access to the health care they are advised to use.  Providing the coverage still gives people the chance to say no.  
Institutional Catholic employers deduct taxes from peoples pay and send it to the government, even taxes used for war, for maintaining the nuclear bomb stockpile, for paying for drugs used in carrying out the death penalty.  I find those acts to be against Catholic teaching, too, yet they do it.