President signs PACE Act

President signs PACE Act

Bulletin Type: 
Health Care Reform

Late yesterday, President Obama signed into law a measure allowing states to decide whether groups with 51-100 employees are subject to the small-group community rating structure defined by the Affordable Care Act (ACA).

In a rare bipartisan effort, the Protecting Affordable Coverage for Employees (PACE) Act was overwhelmingly approved by both the House and Senate and sent to the President earlier in October. 

It's expected that both Kansas and Missouri will elect to limit the small-market health insurance rules to the current 2-50 employee market. 

"The current rating structure in the 2-50 market was set to expand in 2016 to the 51-100 market," said Mike Bukaty, Chairman and CEO of Bukaty Companies. "For the vast majority of clients in this segment, the rating structure would have increased health insurance costs significantly compared to the traditional rate structure in place for larger groups."

Since January 2014, the pricing of small-group health insurance has been based on employee age, geographic area and family status. Within each rated community, small employers pay the same rate for employees of all ages without regard to gender or health status.

"A few of our client groups have benefited from the new rating structure, but the vast majority have experienced much higher costs," said Bukaty.  

The move has been applauded by the National Association of Health Underwriters and other industry groups. 

For more information, contact your Bukaty Companies benefit consultant.