On August 27, 2021, Governor Pritzker signed the Consumer Coverage Disclosure Act. This law requires employers employing individuals in the State of Illinois to provide a health plan comparison. Notably, this law is a notice only law. It does not mandate particular coverage.
Specifically, the law requires that the employer explain to employees what benefits its health plan provides as compared to the essential health benefits required by the State of Illinois.
The Illinois Department of Labor has issued some clarifying FAQs. The FAQs include the list of essential health benefits provided in accordance with Illinois law as well as a fillable Excel template that can be used to make the comparison. The employer is not obligated to use this template.
The comparison document must be provided upon date of hire, annually and upon request. The employer can email the comparison document to its employees or provide the information on a website that an employee is able to regularly access. Generally, proof that the notice is sent should be maintained for two years.
The law is imposed on employers. It applies to employers offering insured or self-funded plans. Further, it applies to private as well as public sector employers covering individuals in the State of Illinois.
Employers will want to work with their insurers and TPAs for assistance in preparing this comparative notice. Again, the law does not require employers to offer any particular benefit. It simply requires employers to provide a comparative notice.
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.