AABP EP Awards 728x90

Insurance commissioner: No change sought in small group definition

/wp-content/uploads/2022/11/BR_web_311x311.jpeg

The definition of small groups for health insurance coverage in Iowa will remain the same under the current state law at 50 employers or fewer, following passage this week of federal legislation that overturned an Affordable Care Act provision that would have expanded the definition to 100 employees or fewer in 2016. The Protecting Affordable Care Coverage for Employees (PACE) Act, signed Wednesday by President Barack Obama, allows each state to determine whether to expand its small-group cutoff at 100 employees,LifeHealthPro reported. Iowa Insurance Commissioner Nick Gerhart said today that any change would have to be enacted by the Legislature. Gerhart said the current law “has worked, and I don’t think I would make a recommendation to change it. There’s nothing in my legislative agenda to make a change.” The Affordable Care Act’s expansion of the small-group market in 2016 was designed to help small businesses by broadening the risk pool in that market. However, many businesses in the 51- to 100-employee range didn’t want to be placed into the small-group market because they feared they would face higher insurance premiums.

oakridge brd 070125 300x250