Consumer Disclosure Act Notification Requirement

Effective 8/27/2021, Illinois fully-insured and self-funded employers who offer group health insurance coverage, are required by law to provide a document to their employees in a format that easily compares the employer-covered benefits with the small group ACA essential health benefits in the following situations: 1) upon the employee’s hire date; 2) provide it annually to all eligible employees; and 3) at the employee’s request.

Further requirements:

• The document must be provided by either providing it to employees via email or by providing the information on a website that all employees are able to regularly access;
• The employer must demonstrate, upon request of the Department of Labor, that each employee received the information;
• The employer must maintain records of providing the information for one year; and
• Penalties may apply to the employer for failure to comply with the requirements.

As noted within the legislation (IL SB 1905/Public Act 102-0630), both “Employer” and “Employee” are defined:

• “Employee” is defined as any individual permitted to work by an employer.
• “Employer” is defined as an individual, partnership, corporation, association, business, trust, person, or entity for whom employees are gainfully employed in Illinois partnership, corporation, association, business, trust, person, or entity for whom employees are gainfully employed in Illinois and includes the State of Illinois, any State officer, department or agency, any unit of local government, and any school district. (includes fully-insured commercial groups, self-funded groups with HA as TPA Administrator)