United Benefit Advisors Insight and Analysis Blog

CMS Provides Clarity on PACE Act Implications for States

Posted by: Danielle Capilla    Nov 12, 2015 12:00:00 PM

The Providing Affordable Coverage for Employees (PACE) Act amended the Patient Protection and Affordable Care Act (ACA) and redefined small employers as those with 50 or fewer employees; it also gives states the option to expand the definition to include employers with up to 100 employees (or, practically speaking, those with 51 to 100 employees, also called "mid-size employers"). Prior to the ACA, all states defined small employers as those with 1 to 50 or 2 to 50 employees; however, many have passed legislation redefining the group size up to 100 employees beginning in 2016. States are now in the process of determining what they define as "small employer."

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Topics: SHOP, small business, Danielle Capilla, Providing Affordable Coverage for Employees Act, PACE Act