NAHU Supports Repeal of Small-Group Expansion

| September 29, 2015

The National Association of Health Underwriters (NAHU) applauds the House of Representatives for getting the necessary two-thirds majority vote to pass the Protecting Affordable Coverage for Employees Act (H.R. 1624). This bipartisan legislation, introduced by Representatives Brett Guthrie (R-KY) and Tony Cardenas (D-29), repeals the mandated small-group expansion and gives states the flexibility to determine the size of their small-group market instead of being forced into the national standard.

Beginning January 1, 2016, the definition of small employers will change from groups of up to 50 employees to groups of up to 100 employees. This change is mandated as part of the Affordable Care Act (ACA). The combination of the new compliance requirements and the regulations for the new group size is expected to cause dramatic change to the insurance policies of medium-sized employers.

“Changing the definition of small-group will eliminate many of the plan choices currently available to employers with 50 to99 employees and make coverage less affordable and more administratively complex,” explained Janet Trautwein, CEO of NAHU. “If this legislation is not passed, severe market disruptions may occur. As we’ve seen in the past, these disruptions will likely destabilize the market, create adverse selection in the small-group pool and lead to dramatic premium increases in 2016.

“NAHU has made the passage of this legislation a top priority. We commend the House of Representatives for leading the way in this legislative process. We now urge the Senate to take action quickly before businesses lose their current health plans and millions of Americans lose their health coverage.”

Category: Consumer & Industry News

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