Removing Illegal Gag Clauses is Vital to Reducing Health Care Costs

Washington, DC – The ERISA Industry Committee (ERIC) urges the U.S. Departments of Treasury, Labor, and Health and Human Services to issue guidance and clarification on eliminating gag clauses in contracts between providers and health plans, as required by the Consolidated Appropriations Act of 2020 (CAA).

“It is vital for employees to have access to price and quality data so that they can make the best decisions about their health care. The clarifications ERIC is requesting will ensure that information is not only available but is clear and consistent to avoid any confusion or delays in decision-making,” said Annette Guarisco Files, President and CEO, ERIC.

In comments submitted to the Departments today, ERIC specifically requested:

  • Clarification that the CAA applies to all contracts and renewals entered into after December 27, 2020
  • Consistent enforcement of the CAA and Transparency in Coverage Rules to ensure plan sponsors have access to the required information from third party administrators
  • Clarification on the effective date to remove gag clauses on price and quality information
  • Confirmation that gag clauses in current Administrative Service Only contracts are now null and void and may not be reimposed
  • Confirmation that non-disclosure agreements between health plans and third parties would constitute an illegal gag clause
  • Clarification that restrictions on the availability of pricing information for plan sponsors and third party administrators to use in transparency tools or benchmarking solutions and plan administration would also constitute illegal gag clauses

For more information about ERIC’s asks, click here to read our comment letter.


All media inquiries to The ERISA Industry Committee should be directed to

About The ERISA Industry Committee
ERIC is a national advocacy organization that exclusively represents large employers that provide health, retirement, paid leave, and other benefits to their nationwide workforces. With member companies that are leaders in every sector of the economy, ERIC advocates on the federal, state, and local levels for policies that promote flexibility and uniformity in the administration of their employee benefit plans.