Illinois Employers Must Expand Dependent Coverage to Parents and Stepparents for Fully Insured Health Plans in 2026
Illinois will soon require fully insured health policies issued in the state to cover parents and stepparents who qualify as dependents, and employers that sponsor these group health plans must take note. This expansion of the Illinois Insurance Code, which applies to policies issued, amended, delivered, or renewed after January 1, 2026, creates new administrative challenges and compliance obligations for group health plans – especially since they typically offer dependent benefits only to children and spouses or domestic partners. We’ll explain what’s changing, how it impacts employers, and what you should do next. A Significant Shift in Dependent Eligibility Gov. JB Pritzker signed a bill ( HB 5258 ) into law last year that will soon require accident and health insurance policies that provide dependent coverage to make that coverage available to any parent and stepparent who: has gross income that is less than the IRS exemption amount ($5,050 for 2025); receives a majority...