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ARTICLE · 09 MARCH 2016

Supreme Court Concludes That ERISA Preempts State Reporting Requirements

In a closely observed federalism battle over the scope of ERISA preemption, the Supreme Court came down on the side of Federal power.

United StatesEmployment and HR

In a closely observed federalism battle over the scope of ERISA preemption, the Supreme Court came down on the side of Federal power. Specifically, in Gobeille v. Liberty Mutual Insurance Company, the Court, in a 6-2 ruling, concluded that ERISA preempted a Vermont law.

The state law at issue required all health insurers, including self-insured health plans governed by ERISA, to provide the state with reports relating to claims data (e.g., claims submitted, claims paid) and other information related to health care. The purpose of the statute is to help provide information to consumers and to improve health care in Vermont.

Writing for the majority, Justice Kennedy concluded that because reporting, disclosure, and record keeping are central ERISA functions, and because violation of ERISA's reporting requirements can result in civil and criminal liability, Vermont's reporting regime intruded upon a central matter of ERISA plan administration and interfered with

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