Consumer Appeal Rights Enforcement Act
Sponsored By: Representative Lee, Summer L. [D-PA-12]
Introduced
Summary
Creates a civil-penalty enforcement regime for ERISA plan claims procedures and external reviews. The bill would strengthen enforcement by letting the Secretary assess fines for failures in claims handling and external-review processes and by replacing direct private enforcement with a penalty-based system.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
New penalties for plan claim failures
If enacted, the bill would create large civil penalties for failures in plan claims, appeals, notices, and external-review rules. Individual failures could trigger up to $1,000 per day for each affected participant or beneficiary, starting when you or the Secretary give written notice and ending when the problem is fixed. Plan-wide (global) failures could cost $1,000 times the number of plan participants each plan year. Some uncorrected failures can be trebled: 90 days for non-health plans, 30 days for group health plans, and 3 days for urgent-care claims. The Secretary could also assess per-violation penalties of $100–$1,000 for pattern-or-practice findings from the last 3 years, with a 120-day cure window for possible waiver. Any person or entity that materially causes a violation could be held jointly and severally liable. These changes would take effect 90 days after enactment.
New enforcement for employee benefit claims
If enacted, the bill would shift how ERISA claim disputes are enforced. It would repeal a prior private-enforcement subsection, change which legal tools are available, and let the Secretary bring actions to collect civil penalties. Courts hearing certain benefit suits would be able to add the new statutory penalties as relief in place of Secretary assessments, and a mutual-exclusivity rule would stop the Secretary and a court from collecting the same penalty for the same violation. The bill would also let courts grant equitable relief based on the actual written terms of a plan. These changes would take effect 90 days after enactment.
Sponsors & CoSponsors
Sponsor
Lee, Summer L. [D-PA-12]
PA • D
Cosponsors
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 7/22/2026
Rep. Carson, André [D-IN-7]
IN • D
Sponsored 8/3/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov