Employer Health Plan Flexibility Act

The Employer Health Plan Flexibility Act would allow certain employer-sponsored group health plans to opt out of the Affordable Care Act's requirement to cover specific Essential Health Benefits. This exemption applies to plans governed by the Employee Retirement Income Security Act and would take effect for plan years starting on or after January 1, 2028. While exempt from those specific coverage mandates, the bill explicitly states that employers must still comply with other federal rules, including those regarding mental health parity, nondiscrimination, and preventive services. To ensure transparency, employers claiming this exemption must annually inform their employees about the benefits included in their plan and identify any Essential Health Benefits that are not covered.