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New Illinois Law Requiring Certain Health Insurance Disclosures by Employers

As of August 27, 2021, Illinois employers that provide group health insurance coverage must comply with a new law that requires certain disclosures to employees, as well as recordkeeping.  This law is known as the “Consumer Coverage Disclosure Act."

These employers must “provide all employees eligible for [employer-provided group health insurance coverage] a written list of the covered benefits included in the group health insurance coverage in a format that easily compares those covered benefits with the essential health insurance benefits required of individual health insurance coverage regulated by the State of Illinois.”  The State of Illinois specifically identifies forty-two (42) “essential health insurance benefits” under ten (10) categories.

Fortunately, the new law does provide direction on how employers may comply with its disclosure requirement: “by providing the required information by email to [their] employees or providing the information on a website that an employee is able to regularly access.”  And the Illinois Department of Labor also provides forms and resources with the information that employers will need to comply.

Employers should, however, take note that the new law charges the Illinois Department of Labor with the duty to enforce it, including its recordkeeping requirement.  Penalties are available if the event of non-compliance, ranging from $500 to the first offense to $5,000 for repeated offenses.

To avoid any such issue, we strongly recommend that you reach out to a member of our Labor & Employment Team at Sandberg Phoenix to review your group health insurance policies and practices and ensure you’re in compliance with this new law.

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