Illinois Employers: Are You Complying With The Consumer Coverage Disclosure Act?

• Published date: 07 February 2022
• Subject Matter: Employment and HR, Food, Drugs, Healthcare, Life Sciences, Retirement, Superannuation & Pensions, Health & Safety
• Law Firm: Groom Law Group
• Author: Ms Katie Bjornstad Amin, Jon Breyfogle, Lisa Campbell, Christine L. Keller and Matthew Lanahan

Illinois recently enacted the Consumer Coverage Disclosure Act (the "CCDA"), which requires that Illinois employers provide a disclosure to employees regarding how the employer's group health plan compares with the essential health benefits under the Illinois benchmark plan. Although the CCDA went into effect on August 27, 2021, many employers are unfamiliar with the requirements.

Employers with self-insured plans that have focused on the law have questioned whether the CCDA is preempted by ERISA. While Illinois takes the position that the law applies to employers with self-insured plans, as discussed below, a court may not necessarily agree if an employer was willing to challenge the law on ERISA preemption grounds.

Below we answer the most common questions we have received regarding the CCDA. You can also read the Illinois Department of Labor (the "ILDOL")

To Which Employers Does the Illinois Statute Apply?

The CCDA applies to employers with employees in Illinois.

What Information Must Employers Disclose?

To comply with the law, employers must disclose a written list of the covered benefits included in the group health coverage in a format that easily compares those covered benefits with the essential health insurance benefits under the Illinois benchmark plan. Illinois has provided a form employers can (but are not required to) use.

To Whom Must the Employer Disclose the Information?

The CCDA requires that the employer provide the list to all employees eligible for the coverage. The CCDA defines "employee" to mean "any individual permitted to work by an employer" and does not specify it only includes Illinois residents.

When Must Employers Provide the Disclosure?

An employer must provide the disclosure upon hire, annually thereafter, and upon request from an employee.

How Can Employers Provide the Disclosure?

An employer can provide the required information by email to its employees or on a website that an employee is able to regularly access. Some employers are including the information in new hire/open enrollment materials.

Is an Employer Required to Provide the Same Essential Health Benefits as the Illinois Benchmark Plan?

No. The CCDA only requires that employers provide the disclosures; it does not mandate that the plan cover a specific level of benefits.

Is the CCDA Preempted by ERISA for a Self-Insured Plan?

The short answer...