I believe that the most important word here is "we". The answer depends so much on who "we" are (Gods that sounds like a Bill Clinton answer). If we (the people on DP) are discussing a private insurance company that pays out it's benefits via the premiums and capitol gains, then my answer is that it is up to the company and you can support or disapprove of the decision by whether or not you are contributing money to that insurance. There are plenty of other insurances to choose from.
Now if by "we" the OP is referring to the tax payers that changes the answer(s) and then depends on exactly what is it we're being asked to cover. IF we are straight out talking contraceptive only then my answer is no. Likewise I don't think we should be covering for drugs to treat ED either. However, I do recognize that these drugs can treat other things besides ED or preventing pregnancy. If the doctor can show that the drug is being used for such purposes then yes, I am fine with that.