All Dealers – ACA Compliance

affordable-care-act

All Dealers – ACA Compliance

Beginning in 2016, the definition of “small employer” for insurance rating and

underwriting purposes changes. In general, employers with 51–100 full-time equivalents

(FTEs) may now fall into the small employer category, and such groups will be subject

to community rating and required to offer essential health benefits for the first time.

However, transition relief issued by the Department of Health & Human Services (HHS)

and the Centers for Medicare & Medicaid Services (CMS) allows states and insurers to

choose to renew current policies through October 1, 2016. In other words, depending

upon which state the insurance policy is being issued out of, employers with 51–100

FTEs who would otherwise be required to purchase a small group policy beginning in

2016 may have the option to renew their current policies through October 1, 2016.

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