On 10/1/15, the Protecting Affordable Coverage for Employees (PACE) Act was signed by both the Senate and House. President Obama then signed the PACE Act into law on 10/8/15. Keep reading to find out why this is critical for employers.
Importance of PACE Act: Small Employer/Small Group Definition
Under the ACA as currently written, the small employer/small group definition would have expanded nationally to include employers with up to 100 employees on 1/1/16.
The PACE Act allows individual states to define a small employer/small group as either 50 or fewer employees or 100 or fewer employees.
UPDATE: Maryland has formally defined Small Business to be consistent with the PACE ACT/Federal Law which is 1-50.
Under the ACA, health insurance offered in the small group market must meet certain requirements that do not apply to the large group market, including:
- adjusted community rating
- no medical underwriting, and
- the requirement to cover all ten categories of essential health benefits.
Individual states must now act to determine if the small group definition will remain at 1-50 or expand to include 100 employees.
The FosterThomas Employee Benefits Team is Here to Help
A Reliable HR Expert Providing Proactive Employee Benefits Advice for Your Organization
The FosterThomas Employee Benefits team will be watching for individual state determinations and will keep our readers posted of any changes to current state laws across the US that may affect you.
Since 1993, FosterThomas has delivered cost-effective, proactive, custom employee benefits solutions. We address them through the design and delivery of the perfectly loaded benefits package that will help you attract and retain employees, while implementing alternative wellness & risk management ideas to contain health care costs. Let’s talk.