Why is Tennessee Violating Federal Law?

September marks the 50th anniversary of the Employee Retirement Income Security Act (ERISA). Since its inception, this federal law has safeguarded employees’ interests by ensuring that health and retirement plan funds are protected and participants receive the benefits they were promised. 

However, in the past three years, Tennessee has passed laws that benefit pharmacists and Big Pharma but violate ERISA and the businesses it protects. These laws explicitly include plans governed by ERISA, directly affecting companies with self-insured plans – plans where the employer covers the health benefits and customizes the plan to meet its employees’ needs. 

Put simply, these actions by state legislators are illegal.  

Ironically, Gov. Bill Lee recently issued a proclamation recognizing ERISA’s 50th anniversary, acknowledging Tennessee’s commitment to protecting benefit plans and its reputation as a business-friendly state.   

Despite Gov. Lee’s recognition of ERISA’s 50th anniversary and the benefits it provides to businesses, lawmakers continue to undermine ERISA by passing Big Pharma-backed legislation that violates federal law. 

Because of illegal laws like this, Tennessee is destroying its reputation as a business-friendly state.  By subjecting benefit plans to state-specific regulations, Tennessee now adds significant and unnecessary costs to employers with self-funded plans. In fact, Tennessee has become the second most regulated state in the nation – only behind California – when it comes to benefit plans. 

To restore Tennessee’s business-friendly reputation and live up to the values proclaimed by its governor, TEBA urges Tennessee lawmakers to support a bill that specifically reinstates respect for ERISA.  

To mark ERISA’s 50th anniversary, contact your legislator and demand they protect ERISA.