PACE Act: Some Positive News For Employers With 51 To 99
Employees
For insurance market reform purposes, the Affordable Care Act (ACA)
initially defined "small employers" as those with fewer
than 50 employees. This definition was set to change in 2016, with
the number increasing to 100. However, the Protecting Affordable
Coverage for Employers (PACE) Act recently changed this. Now, each
state will determine on its own whether the insurance market reform
rules will apply to those employers with 51 to 99 employees.
This is significant for employers because the insurance market
reform rules impose rating limitations, commonly known as community
rating, upon small employers. The community rating concept limits
what insurance carriers can take into account when rating employers
for group health plan insurance costs.
