The Protecting Affordable Coverage for Employers Act will reduce burdens from the Affordable Care Act on many midsize employers
President Obama signed the Protecting Affordable Coverage for Employers (PACE) Act (HR 1624/S 1099) on Oct. 7 to reduce burdens from the Affordable Care Act (ACA) on many midsize employers.
The National Roofing Contractors Association (NRCA) is pleased with the change. Before PACE, the ACA originally required that all state small-group insurance markets cover not just firms with 1 to 50 employees, but those with 51 to 100, as well.
Many midsize companies would have had to change plans, possibly resulting in an increase of up to 18 percent or more, according to the consulting firm Oliver Wyman. Costs would have risen because small-group insurance markets are more strictly regulated than large-group markets, the NRCA says.
“By preventing the scheduled expansion of the small group markets under the ACA from being implemented in 2016, the PACE Act will reduce potential adverse effects on employers and workers,” said William Good, executive vice president of the NRCA, in a statement. “The legislation merely retains the status quo that has been in existence for decades under which states may choose to expand the small group market if they wish but are not mandated to do so by the federal government.” PB