The New Small Group – 50-100 Employees (Part 2)
The New Small Group – 50-100 Employees (Part 2)
In Part 1, we looked at the changes in benefits and how health plans are rated for the New Small Group. In this article we will look at the Play or Pay Employer Mandate in regards to the New Small Group.
The ACA mandates that employers with 50 or more full time equivalent employees (FTEs) MUST offer Minimum Essential Health Insurance Coverage (MEC) to their full time employees. Not only do they have to offer insurance, but the amount that the employee pays toward that insurance must be deemed ‘affordable.’ (more…)
Insurance companies have released their proposed rate increases for 2017. As suspected, all carriers are increasing their premiums. A good portion of the increase is due to the discontinuation of a reinsurance program that was initially available to help the insurance companies offset some of the higher costs they faced now that they are insuring chronically ill people as well as all others. Without the reinsurance program, the additional costs have now been passed on to the consumer. 
The definition of a ‘small group’ changed in 2015, from 1-50 employees to 1-100 employees. Prior to this time, businesses with 50-100 employees fell into the ‘large group’ category. Most people do not realize that the medical benefits available – as well as the cost of those benefits – are very different between the two classifications of employee groups. This series of three articles will address these differences in the hopes of helping the New Small Groups understand their new rules and obligations according to the Affordable Care Act.