In March, after an uproar among religious institutions that didn't want to pay for contraceptives, the Obama administration offered several policy suggestions that would require the administrator of the insurance policy, not the religious institution or the insurer, to pay for contraception coverage and invited comment on those proposals.

The administration is expected to detail how it will handle two of the more controversial situations, said a source familiar with Friday's announcement.

"Religiously affiliated organizations will be given the option of exempting themselves from the requirement of providing their employees with contraceptive access or service that they are morally opposed to," said the source.

A spokesman for the Health and Human Services Department refused to comment on the expected policy announcement.

If an institution opts out of paying for contraceptive coverage, individual employees will get coverage through a third entity. That separate exchange, said the source, would be paid for by the insurance company.