Small Group Size
States have the choice to delay expansion of the small group market. There are a number of factors—stability of markets and the Exchange, business demographics, risk profiles and implications for state regulation—to consider in making this decision.
*Full name: Decide whether to delay the extension of the state’s small group market to groups of 51-100 until 2016.
*Relevance to the ACA:
The ACA defines small employers as those with 100 or fewer employees, and also by definition transfers those specifications to the small group market. However, states do have the option of limiting the small market definition to 50 or fewer employees. Relevant sections include:
§1304 - Defines a small employer as an employer with between 1 and 100 employees. A large employer is an employer with at least 101 employees. By definition, the large and small group markets are comprised of large and small employers, respectively. States are given the option to limit the small employer definition to 50 or fewer employees in plan years before 2016.less