Compliance October 15, 2015

Bill Redefines Small Employers Under ACA

Currently under the ACA, employers with 51 to 100 employees are small employers.
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Earlier this month, President Barack Obama signed into law the Protecting Affordable Coverage for Employees (PACE) Act.

The bill amends the Patient Protection and Affordable Care Act (ACA) and Public Health Service Act to include employers with 51 to 100 employees as large employers for purposes of health insurance markets. However, states will still have the option to treat these employers as small employers.

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Currently under the ACA, employers with 51 to 100 employees are small employers, but the new law allows states, prior to January 1, 2016, to treat them as large employers. This affects employers because the ACA requires health insurance offered in the small-group market to meet certain requirements that do not apply to the large-group market, including the requirement to cover the essential health benefits.

Text of the bill can be accessed here.

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