On March 1, 2016, the Supreme Court held that a Vermont law requiring detailed reporting of health data could not be applied to self-funded plans subject to ERISA. In Gobeille v. Liberty Mutual Insurance Company, the Court, in a 6-2 decision, held that the Vermont law is preempted by ERISA. The Court said: “The state statute imposes duties that are inconsistent with the central design of ERISA, which is to provide a single uniform national scheme for the administration of ERISA plans without interference from laws of the several States, even when those laws, to a large extent, impose parallel requirements.”

The Gobeille decision has implications beyond the Vermont law. At least 18 states have similar health data reporting laws, and many other states have been considering such laws. The broad nature of the Gobeille decision indicates that other health data reporting laws would also likely be preempted. The decision also may indicate a shift in preemption analysis, potentially opening up a larger window as to what state laws are preempted. Indeed, the Court has already sent one pending preemption case back to the Court of Appeals for revaluation in light of Gobeille.