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“Small Group Employer” Definition in Each State

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.


“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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