Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Good News For Small Businesses: The Affordable Care Act May See Minor Changes

Author: Scarinci Hollenbeck, LLC

Date: October 26, 2015

Key Contacts

Back

Five years after its passage, the Affordable Care Act is still undergoing minor tweaks. The latest change is good news for small businesses.

Five years after its passage, the Affordable Care Act is still undergoing minor tweaks. The latest change is good news for small businesses.

Earlier this month, President Barak Obama signed the “Protecting Affordable Coverage for Employees Act of 2015,” otherwise known as the PACE Act. The new law redefines the term “small” employers with respect to determining whether employers must provide health coverage for their employees within the Affordable Care Act.

Under most state laws, employers with one to 50 employees are considered small employers, while employers with 51 to 100 employees are considered large employers. The Affordable Care Act deviated from this standard by categorizing employers with 51 to 100 employees as small employers. However, prior January 1, 2016, states had the option to continue to treat them as large employers.

The definition is important for Affordable Care Act compliance because large and small employers are treated very differently under the Affordable Care Act. Health insurance offered in the small group market must meet certain requirements that do not apply to the large group market, including the requirement to cover ten “essential health benefits” and provide plans that plans that fall into the actuarial value levels (platinum, gold, silver, and bronze) established by the Affordable Care Act. These requirements, along with several others, have made purchasing insurance more costly for small employers.

The PACE Act curtails the expansion of the definition of “small employer” under the Affordable Care Act. Instead, it authorizes states to define the small employer market within their jurisdiction for employers of up to 100 individuals. According to the Congressional Budget Office, the new law will result in a net reduction in health premiums for insurance purchased by firms with between 51 and 100 employees.

Most states, including New Jersey, elected to delay the expansion of the definition of “small employer” through 2016. Accordingly, the state is expected to continue to define small employers as those with less than 50 workers. The path forward for states like New York, which already adopted the expanded definition, is less clear.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Tariff Response Options for Small Businesses Facing Financial Distress post image

Tariff Response Options for Small Businesses Facing Financial Distress

The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]

Author: Brian D. Spector

Link to post with title - "Tariff Response Options for Small Businesses Facing Financial Distress"
Common Causes of Partnership Disputes and How to Resolve Them post image

Common Causes of Partnership Disputes and How to Resolve Them

Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]

Author: Christopher D. Warren

Link to post with title - "Common Causes of Partnership Disputes and How to Resolve Them"
President Trump's Termination of Member Gwynne Wilcox post image

President Trump's Termination of Member Gwynne Wilcox

On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]

Author: Matthew F. Mimnaugh

Link to post with title - "President Trump's Termination of Member Gwynne Wilcox"
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide post image

How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide

Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]

Author: Christopher D. Warren

Link to post with title - "How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!