ACA News: Changes to ACA Small Business Requirements

People sitting in a room, might be a conference room. One is standing up at a whiteboard, the others are busy doing other things. Title - Are you a small business according to the ACA?

What is the definition of a small business according to the Affordable Care Act? You might be thinking mom and pop shops exclusively, but the definition has changed when it comes to ACA small business requirements. Earlier this month, Obama signed into legislation the PACE act.

What does this mean for small business?

The change is said to prevent premium increases that some small businesses expected in the next year. The PACE act keeps the ACA’s definition of small business being one to 50 employees but individual states can decide to expand that number from a max of 50 to 100 employees.

See the Protecting Coverage for Employees (PACE) act (H.R. 1624) here.

This will impact how premium rates are set in the broader insurance market and affects how insurance companies pool risk. Small group health plans are bound by certain requirements that large group plans are not. Should your state agree to leave the definition as is; the law change will help prevent a larger premium increase above any normal increase.

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