On October 1, Congress approved a bill repealing the Affordable Care Act (ACA) provision expanding the small group definition, which was scheduled to change from 1-50 to 1-100 employees on January 1, 2016. President Obama is expected to sign the bill into law next week.
The repeal legislation, the Protecting Affordable Coverage for Employers (PACE) Act, maintains the current 1-50 employee definition of a small employer and gives states flexibility to expand the small employer definition up to 100 employees if they determine market conditions necessitate the change.
Under the ACA, health insurance offered in the small group market must meet certain requirements that do not apply to the large group market. This includes adjusted community rating, no medical underwriting and the requirement to cover all ten categories of essential health benefits.
If this bill becomes law, each state will have to determine whether it wants to default to the revised Federal definition of Small Business (1 to 50) or move to a 1 to 100 definition. The outcome should be known this month.
Expriva.com is following up closely on this important change to the ACA. If you have any questions about how this change may impact your business, contact us and we will work with you to find a health plan that will meet your needs.