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ACA Small Group Market Rule Repealed

Affordable Care Act News: Small Group Market Rule Repealed: Compliance Bulletin from CBG BenefitsOn October 7, 2015, President Obama signed the Protecting Affordable Coverage for Employees (PACE) Act into law. The PACE Act repeals the Affordable Care Act (ACA) requirement that the small group market in every state be expanded to include businesses with 51-100 employees.

Most states have historically defined “small employers” as those with 50 or fewer employees for purposes of defining their small group health insurance market. Effective for 2016 plan years, the ACA expanded the definition of a “small employer” to include those that employed an average of between one and 100 employees.

The PACE Act eliminates the ACA’s new definition and, instead, gives states the option of expanding their small group markets to include businesses with up to 100 employees.

According to many, it is assumed that Massachusetts will retain the current small group definition as employers with up to 50 employees.  Thus, this may also put an end to the need for early renewals, which some carriers had been offering as a way for employers to take advantage of a transition period before the small group definition rule was enforced.

We will monitor this situation closely as additional information is released.

Please contact the CBG Benefits team if you have any questions at 781-759-1222 or via email at info@CBGBenefits.com.

We encourage all clients to log-in to CBGconnect to download our full Compliance Bulletin on this topic as well.

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