In late August 2021, the Illinois legislature passed the Consumer Coverage Disclosure Act. The Act included disclosure requirements applicable to employers who offer group health coverage to employees in the State of Illinois.
The Act requires an employer that offers group health coverage in Illinois to provide employees with a list of essential health insurance benefits regulated by the State of Illinois and a comparison to what is covered by the employer provided health plan. This requirement applies to both fully insured plans and self-funded plans offered in Illinois by in-state employers and out-of-state employers with employees who work in Illinois. Employers should consult with their carriers or third-party administrators for assistance with the disclosure.
Here are some specifics for employers regarding this requirement:
More information: Illinois Department of Labor FAQshealth coverage to their employees.
Who: The requirement is applicable to Illinois-based employees who are eligible for group health plan coverage.
Sample form: Employers may, but are not required to, use the form created by the State of Illinois – Essential Health Benefits Form – PDF
Timing: Employers should provide this information to employees upon hire, on an annual basis and upon request.
Delivery: Employers may notify employees by email or by posting on-line to a site accessible by employees.
Effective: January 1, 2022
Takeaway
If your organization operates in Illinois and makes an offer of group health coverage, you would be well-served by reviewing the provisions of this Act. Organizations with employees in Illinois need to comply with this disclosure requirement.
