Changes Afoot for Small Groups Under the ACA?

On September 28th, the U.S. House of Representatives voted unanimously to cancel the ACA's expansion of the definition of small employer in H.R. 1624, the Protecting Affordable Coverage for Employees Act (PACE).  The ACA was set to expand the definition of small employer from 1-50 employees to 1-100 employees on January 1, 2016.

While Congress' orginal intent in expanding the definition of small employer was to decrease premiums for small employers, it did not seem like that would be the case.  Many believe that instead this change in definition would actually lead to significant premium increases for small to mid-sized employers.  The PACE Act leaves the 1-50 definition in place, but gives states the option of expanding the definition of small employer to cover employers with up to 100 employees.

This is important to small employers, as small employers are treated differently under the ACA.  If the bill passes the Senate and is signed by the President, the cancellation of the expansion will free small employers from the rules that were to cause an increase in premiums.

Stay tuned for more.