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NAIC supports state choice on ‘small group’ definition

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The National Association of Insurance Commissioners’ president testified before Congress today in support of the Protecting Affordable Coverage for Employees (PACE) Act, the NAIC said in a release. NAIC President Monica Lindeen spoke on behalf of the bill, which would allow states to define “small group” for the purposes of health insurance. The Affordable Care Act changed the definition of “small group” for the purposes of health insurance from an employer with 1-50 employees to one with 1-100 employees. This change would subject midsized employers (those with 51-100 employees) to new rating restrictions and benefit requirements. The NAIC said these changes “could increase costs to employers, limit flexibility and ultimately drive up premium costs for employees.” Another NAIC member, Washington State Insurance Commissioner Mike Kreidler, testified on behalf of his state against the legislation.

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