The Approval Of The Pace Act
The Protecting Affordable Coverage for Employees (PACE) Act was recently approved by President Obama. The PACE Act will rescind the Affordable Care Act (ACA) mandate that states that the small group market in every state be enlarged to include businesses that have 51-100 employees. The PACE Act will go into effect on January 1, 2016. As your Orlando construction attorney, we know how important the PACE Act is for small to mid-sized construction companies, and want to answer any questions you might have about it.
What Is The Small Group Market?
In most states there are small employers, i.e., employers with 50 or fewer employees that fall into the small group health insurance bracket. The ACA has enlarged the definition of a small employer to encompass 1-100 employees. The newly signed PACE Act will give states the alternative to expand their small group markets to now contain businesses with up to 100 employees.
What Does This Mean For Construction Employers?
The prediction for the small group was that there would be a greater effect on mid-sized businesses because they would have been obligated to purchase coverage for their employees in the small group market, which is more regulated than the large group market. This change would have raised premium costs for both construction employers and employees and decrease flexibility in choosing plans. By averting the scheduled expansion of the small group markets under the ACA from being applied in 2016, the PACE Act will decrease probable adverse effects on employers and workers. The legislation preserves the existing condition that has been around for years under which states may choose to increase the small group market if they want to; but they are not required to do so by the federal government.
NRCA Commends The PACE Act Approval
The National Roofing Contractor’s Association (NRCA) has commended Congress for approving the PACE Act. The NRCA has stated that they actively support this legislation and are happy to see that the House approved it last month. The NRCA has said that they will continue to stride for support of legislations to reduce regulatory burdens that drive up the cost of health care benefits for construction employers and their workers.
To speak with one of our Orlando construction lawyers, or for more information on our construction law services, please contact our office at 407.378.6575 or submit our contact request form to request a consultation.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.