“negotiate” what? The law is already the law. Oh, you mean the same way a playful cat “negotiates” with a bedraggled mouse.
Not in any real sense. "The law," in this case, is whatever the Secretary of HHS - currently Darth Sebelius, may flying monkeys eat her gizzard - says it is. It's government by diktat, just like in any 3rd-world dictatorship or good old Soviet Russia.
Nonetheless, it would be a lot smarter, in my opinion, for the Church to stand on this hill rather than wait for the next assault: stand for every citizen (remember when we were citizens, rather than subjects?) and not just for themselves.