Report Examines Implications of ERISA Preemption for State Health Policy

WASHINGTON, February 11 - Over the past two and a half decades, the Employee Retirement Income Security Act's (ERISA) national standards for employee benefit plans have repeatedly limited state efforts to expand health care coverage and regulate insurance markets. ERISA prevents states from requiring self-insured employee plans to report data or participate in purchasing pools. Even more recent state policy initiatives such as managed care regulation face ERISA preemption challenges because of narrow court interpretations of the authority to regulate insurers. Though recent court decisions have narrowed the scope of ERISA, the reach of this federal law remains extensive and uncertain.

To help states examine how their health policy objectives intersect with the provisions of the ERISA law, the Alpha Center and the National Academy for State Health Policy (NASHP) have jointly produced a report, "ERISA Preemption Manual for State Health Policymakers," under the State Coverage Initiatives - an initiative of The Robert Wood Johnson Foundation. Written by Patricia Butler, consultant to NASHP, this manual compiles legal and policy analysis of ERISA and its implications for a wide variety of current and prospective health policy initiatives and issues.

"Although state policymakers have long known that ERISA's preemption clause imposes some limits on their ability to finance access expansions and regulate health insurers, recent court interpretations should give states more confidence in both drafting legislation to avoid ERISA problems or defending state initiatives challenged in court," says Butler. "The purpose of this manual is to provide guidance and encourage to such state efforts."

To receive a copy of "ERISA Preemption Manual for State Health Policymakers," contact LeAnne DeFrancesco at LeAnne.DeFrancesco@academyhealth.org.

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Alpha Center (www.ac.org) is a non-profit health policy center dedicated to improving access to affordable, quality health care. Based in Washington, D.C., Alpha Center serves as the national program office for State Coverage Initiatives.

The National Academy for State Health Policy (www.nashp.org) is a non-profit, mutidisciplinary organization that provides a forum for leading state policy officials to exchange insights, information and experience in formulating health policy and to develop practical, innovative solutions to complex health policy issues confronting states.

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