The Protecting Affordable Coverage for Employees (PACE) act gives states the ability to choose a “small group employer” definition of either 2-50 employees or 2-100 employees. President Obama signed the PACE act, which undid the ACA’s mandatory expansion of the definition, back in October, and states are still deliberating.
The small group employer definition matters because it impacts how insurance rates are set. Determining which companies fall into which categories affects how insurance carriers pool risk and, potentially, set your insurance premiums. If you’re a small business with fewer than 50 employees, this doesn’t affect you. However, if you’re a small business that’s expecting to grow in 2016, you could be impacted by the PACE act.
There’s no action for you to take. We’re watching this closely—and if you’re a Zenefits customer, you’ve got expert benefits advisors looking after you. The following table will be updated monthly as each state reveals its decision on the definition of small group employer.
State |
“Small Group Employer” Definition |
| Arizona | Up to 50 |
| Arkansas | Up to 50 |
| Connecticut | Up to 50 |
| Delaware | Up to 50 |
| DC | Up to 50 |
| Illinois | Up to 50 |
| Louisiana | Up to 50 |
| Maryland | Up to 50 |
| Massachusetts | Up to 100 |
| Michigan | Up to 50 |
| Nevada | Up to 50 |
| New Hampshire | Up to 50 |
| North Carolina | Up to 50 |
| Oklahoma | Up to 50 |
| Oregon | Up to 100 |
| Utah | Up to 50 |
| Wisconsin | Up to 50 |
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