Wednesday, October 14, 2015

Repeal of Definition of Small Employer Group back to 1-50 Employees under ACA

On October 8, 2015, the federal government repealed the legislation that had redefined employer groups with 51 to 100 full-time-equivalent employees as small groups for 2016 health insurance coverage.

However, the federal legislation still allows individual states the option to expand the definition of small group from 1 to 100 employees in 2016, which is the definition currently set by the Virginia and District of Columbia legislatures.

Following the federal announcement to repeal the decision to redefine employers with 51-100 employees as small groups, Maryland issued bulletin (15-27) stating that Maryland's definition of small group will align with the federal changes and remain at the 1-50 employee level.

Bulletin 15-27 states, "Since Maryland law has been drafted to follow the federal law, for plan years that begin on or after January 1, 2016, small employers will be those that during the preceding calendar year employed an average of not more than 50 employees.”

Excerpt from Kaiser Foundation Health plan

This is good news as groups over 50 Full-Time and Full Time Equivalents were being pushed down to small group which historically has had higher rates and more ACA mandates.