Employer Health Plan Flexibility Act

Sponsor: Rick W. Allen (Republican-GA)July 21, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

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.

Lets many employer health plans choose which basic benefits to cover, changing rules for millions of workers.

This bill would let many employer-sponsored health plans choose which basic health benefits to cover. They would no longer be required to offer all of the Affordable Care Act's Essential Health Benefits. This change would give employers more flexibility in designing their health plans. For millions of workers, it means their employer's plan might offer different benefits, though plans would have to tell them what's covered and what's not.

What Would Change

Today, many employer-sponsored group health plans must follow federal rules that require them to cover a set of Essential Health Benefits, such as maternity care and prescription drugs. If this bill becomes law, employer-sponsored health plans governed by ERISA would no longer be federally required to provide these specific benefits. Instead, they would have more flexibility in choosing what to cover. However, they would need to tell employees annually which benefits are included and which Essential Health Benefits are not.

Key Provisions

Lets many employer-sponsored health plans choose not to cover all of the Affordable Care Act's Essential Health Benefits.
Requires these plans to send annual notices to employees, listing covered benefits and any Essential Health Benefits not included.
Ensures that other important health plan rules, like those for mental health parity and COBRA, would still apply.
Directs the Secretary of Health and Human Services to update regulations to reflect these new exemptions.
Starts these changes for health plan years beginning on or after January 1, 2028.

View on Congress.gov

HR 9798 · 119th Congress · July 21, 2026 · AI Summary by gemini-2.5-flash · 8/10

Employer Health Plan Flexibility Act

What Would Change

Key Provisions

Lobbying Activity