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TxSIP     CALA

ACA Small Group Definition WILL NOT go to 100

A small portion of the ACA was quietly repealed last week.  The provisions that require the definition of a "small group" under the ACA to expand to any group under 100 in 2016 were repealed.  The President has indicated thate he will sign the bill.   Accordingly, in Texas, the definition of a small group will remain where it has been at less than 50 employees.

This is big news for groups between 50 and 100 employees, though they likely will not even know that they dodged a bullet.  It would have required these groups to be subject to community rating instead of being underwritten based on their own claims experience.  For the majority of these groups, that would have a meant a double-digit increase in premiums.

It is nice to have some good news for a change.  

 

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