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October 08, 2015 | Leave a Comment
Late last week, the U.S. Senate passed the Protecting Affordable Coverage for Employees (PACE) Act, which repeals the Affordable Care Act rule expanding the small group market to include businesses with up to 100 employees. The PACE Act was passed by the House of Representatives earlier in the week. It is expected to be signed by President Obama, although some reports have indicated he would veto it.
The PACE Act eliminates the ACA’s new definition of “small employer” and gives states the choice of whether to expand their small group markets to include businesses with up to 100 employees. Some states have already amended their state laws to adopt the expanded small group market definition and will need to take action to undo those changes. However, many employers are taking advantage of a transition rule allowing them to have large group policies if they are renewed by Oct. 1, 2016.