Illinois mandates health plan disclosure with EHB comparison 

March 2, 2026

Employers must make a separate health plan disclosure to Illinois employees under a 2021 state law. An employer offering group medical coverage to Illinois employees must provide a comparison of the plan’s covered benefits with the essential health benefits (EHBs) provided by the Illinois benchmark plan. The law applies to fully insured and self-funded medical plans. Regulators have posted a sample template and FAQ. Although employers don’t have to offer the EHBs listed, they do have to identify which EHBs the employer-sponsored plan includes and excludes. 

While the law has not changed since it was enacted, updates to this article include added resources and content.

The Consumer Coverage Disclosure Act (CCDA) applies to all employers that offer group health coverage to Illinois employees, including those employed by the state government, any unit of local government and any school district. The law applies to insured and self-funded plans, regardless of plan situs, employer headquarters, plan size or grandfathered status.

The CCDA broadly defines an employee as “any individual permitted to work by the employer,” which may raise questions as to what extent this law applies to retiree-only group health plans, an issue that remains unaddressed. The law is self-described as “concerning employment” and is enforced by the Illinois Department of Labor (ILDOL), not the Illinois Department of Insurance. Employers may want to review with legal counsel whether retiree health plans are beyond this law’s reach.

Employers must compare the health benefits covered by each group health plan offered to Illinois employees against the EHBs detailed in the sample template provided by state regulators, indicate which benefits the plan does or does not cover, and provide the information to covered employees.

• Disclosure method. Employers may provide the written disclosure by email or post it on a website that employees regularly access. The law mentions only electronic disclosure options but does not specify any electronic distribution requirements. Employers must maintain disclosure records for at least one year.
• Timing. The law requires employers to provide this information to Illinois employees upon hire, annually, and on request. Employers typically provide an updated disclosure during open enrollment.
• Penalties. Noncompliance penalties can range from $500 to $5,000, depending on employer size and the number of offenses. However, employers will first receive 30 days’ notice to correct any noncompliance.

The disclosure must indicate which EHBs are or are not covered by each employer-sponsored health plan. Employers do not have to use the sample template (available in Excel and PDF formats). However, the sample template has page numbers identifying where the referenced benefit appears in the Department of Insurance’s Access to Care and Treatment Benchmark Plan and the All Kids Dental Plan. 

The completed disclosure must include clear information about the EHBs covered or not covered by the employer-provided group health plan. In many instances, an employer’s plan may not cover items to the full extent provided by the benchmark plan. Employers with such plans should answer "yes, partially" or "partially" and explain the discrepancy. For example, employers with stand-alone dental plans may want to indicate that pediatric dental coverage is available only under a stand-alone plan. Alternatively, employers completing the comparison by checking only the boxes that match the benchmark plan’s EHBs can answer “no” or leave the option blank.

Group health plan sponsors covering Illinois employees will need to develop a process for completing and distributing the annual disclosure. Multiple plan variations will require multiple disclosures (e.g., separate disclosures for the PPO and the HMO). Employers should contact their health plan insurers and third-party administrators to determine what level of assistance they can offer in evaluating which EHBs are covered by the employer’s plan and completing the template, with annual updates as needed. Employers should also consider the most appropriate distribution method, such as inclusion with new hire and annual enrollment materials. In addition, employers should track any new guidance that would clarify timing.

The state contends in its FAQ that employers providing self-funded ERISA plans are subject to the provisions of the CCDA. The state reasons that the law is a disclosure mandate, not a coverage mandate, and applies to covered Illinois employers, regardless of the plan’s self-funded or insured status.

The US Supreme Court in Gobeille v. Liberty Mutual Ins. Co. (577 U.S. 312 (2016)) noted that “reporting, disclosure, and recordkeeping are central to, and an essential part of, the uniform system of plan administration contemplated by ERISA.” The court noted this concern: “[d]iffering, or even parallel, regulations from multiple jurisdictions could create wasteful administrative costs and threaten to subject plans to wide-ranging liability.” ERISA regulations require plan sponsors to provide participants with a summary plan description outlining benefits, eligibility, and other plan details. Other disclosure requirements apply to ERISA plans, as indicated by the US Department of Labor. The Affordable Care Act also requires plan sponsors to provide summaries of benefits and coverage. Some may view the Illinois law as imposing the sort of duplicative disclosure cited by the high court.

While the Gobeille decision may seem to apply here, only the courts can determine whether the Illinois law is preempted. Employers with ERISA plans that don’t want to comply with the state law should discuss the issue with legal counsel.

• FAQs (Illinois Department of Labor)
• Model EHB chart (Illinois Department of Labor, November 12, 2021)
• Consumer Coverage Disclosure Act (820 IL Rev. Stat. 46, August 27, 2021)
• Gobeille v. Liberty Mutual Ins. Co., 577 U.S. 312 (2016)
• Reporting/disclosure guide for employee benefit plans (US Department of Labor, August 15, 2024)
• Illinois benchmark plan (Centers for Medicare and Medicaid Services)

• Some states require group health plan sponsor reporting (December 3, 2025)
• Roundup of selected state health developments, third-quarter 2021 (October 22, 2021)