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H.R. 9798House119th Congress (2025-2027)In Committee

Employer Health Plan Flexibility Act

Sponsored by Rick W. AllenRep. Rick W. Allen (R-GA)
Introduced July 21, 2026

AI-Generated Summary

Updated July 23, 2026 at 10:52 AM UTC

The Employer Health Plan Flexibility Act would let employer‑sponsored group health plans that are governed by ERISA skip the Affordable Care Act’s requirement to cover the defined Essential Health Benefits. The exemption applies only to those ERISA plans and does not affect other federal health‑care rules. Plans that use the exemption must still follow nondiscrimination, mental‑health parity, COBRA, fiduciary, tax, and preventive‑service rules, and they must give participants a yearly notice about which benefits are not covered. The changes would take effect for plan years starting on or after January 1, 2028.

Key Provisions

  • Amends ERISA to state that ERISA‑governed group health plans are not required to provide the ACA’s Essential Health Benefits.
  • Amends the Public Health Service Act to clarify that its provisions do not apply to ERISA‑governed employer group health plans.
  • Requires the HHS Secretary to update regulations to reflect the new exemption.
  • Specifies that the exemption does not waive other federal requirements such as HIPAA portability, mental‑health parity, COBRA, fiduciary duties, tax rules, nondiscrimination, and preventive‑service mandates.
  • Mandates annual disclosure to plan participants describing covered benefits, which Essential Health Benefits are omitted, cost‑sharing details, and how to obtain the Summary Plan Description.
  • States that the exemption does not prevent employers from voluntarily offering any or all Essential Health Benefits and does not change existing ERISA preemption or state insurance regulation.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the Committee on Education and Workforce, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Education and Workforce Committee

July 21, 2026

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HouseIntro Referral

Introduced in House

July 21, 2026

HouseIntro Referral

Referred to the Committee on Education and Workforce, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Education and Workforce Committee

July 21, 2026

Bill Text

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Introduced in HouseIssued July 21, 2026

I

119th CONGRESS

2d Session

H. R. 9798

IN THE HOUSE OF REPRESENTATIVES

July 21, 2026

Mr. Allen introduced the following bill; which was referred to the Committee on Education and Workforce, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Employee Retirement Income Security Act of 1974 and the Public Health Service Act to exempt certain employer-sponsored group health plans governed by ERISA from the Affordable Care Act’s Essential Health Benefits requirements, and for other purposes.

1.

Short title

This Act may be cited as the Employer Health Plan Flexibility Act.

2.

Exempting certain employer-sponsored group health plans from the Affordable Care Act's Essential Health Benefits requirements

(a)

Amendment to ERISA

Section 715 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185d) is amended by adding at the end the following:

(c)

Notwithstanding any other provision of Federal law, a group health plan sponsored by an employer and governed by this Act shall not be required to provide coverage for the Essential Health Benefits described in section 1302(b) of the Patient Protection and Affordable Care Act solely by reason of such Federal requirement.

.

(b)

Amendment to the Public Health Service Act

Section 2707(a) of the Public Health Service Act (42 U.S.C. 300gg–6(a)) is amended by inserting This section shall not apply to any employer-sponsored group health plan governed by the Employee Retirement Income Security Act of 1974. at the end.

(c)

Conforming amendments

The Secretary of Health and Human Services shall revise applicable regulations to reflect the exemption established under this Act.

3.

Preservation of other Federal requirements

Nothing in this Act shall be construed to exempt a group health plan from compliance with—

(1)

the portability and nondiscrimination provisions of the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. 201 et seq.);

(2)

the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (subtitle B of title V of division C of Public Law 110–343);

(3)

the Consolidated Omnibus Budget Reconciliation Act of 1985;

(4)

fiduciary duties under the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.);

(5)

Internal Revenue Code requirements applicable to employer-sponsored health plans;

(6)

Federal nondiscrimination requirements; or

(7)

preventive services requirements, unless otherwise provided by law.

4.

Employer disclosure requirements

A group health plan claiming the exemption under this Act shall annually provide participants with a notice that includes—

(1)

a description of benefits covered under the plan;

(2)

identification of any Essential Health Benefits not covered;

(3)

information regarding cost-sharing; and

(4)

instructions for obtaining the Summary Plan Description.

5.

Rule of construction

Nothing in this Act shall—

(1)

prohibit an employer from voluntarily providing all or part of the Essential Health Benefits;

(2)

alter existing Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.) preemption; or

(3)

affect State regulation of health insurance issuers except as expressly provided.

6.

Effective date

The amendments made by this Act shall apply to plan years beginning on or after January 1, 2028.