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The Protecting Affordable Coverage for Employees Act

Dec 2015
Posted in ACA 101

The Protecting Affordable Coverage for Employees (PACE) Act was signed into law. This Act maintains the current definition of small group health plans. In 2016, the definition of a small group employer would have changed to employers with 2-100 employees. Instead it will remain employers with 2-50 employees (although states have the option of changing this). This is important because certain ACA insurance market reforms do not apply to insurance offered in the large group market. Companies between 51 and 100 employees were expected to face new requirements and higher costs for their health insurance without this change. If the definition changed, employers with 51-100 employees would have had to comply with strict rating restrictions allowing insurance premium rates to vary based only an age, geographic area, tobacco use, and family size. This all would have most likely increased the health insurance premiums for small businesses.

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