Pace Act redefines small business with respect to ACA

President Obama's Signature image 1

Pace Act redefines small business with respect to ACA


Obama signature on healthcare bill October 8, 2015 – President Barack Obama signed into law H.R. 1624, the Protecting Affordable Coverage for Employees Act of 2015 (“PACE Act”).  The PACE Act makes relatively minor changes to the Patient Protection and Affordable Care Act (“ACA”), as well as the Public Health Service Act; each of which defines “large” and “small” employers for determining how employers must provide health coverage for their employees.

Republican Senator Mitch McConnell had this to say about the bill, “[It] will help protect small and medium-sized businesses that provide health care to their employees, give states more flexibility to define what constitutes a small business for health insurance purposes so as to protect health benefits for workers, lower health premiums, and reduce cost for taxpayers.”

The PACE Act works to protect smaller employers from increased regulations while granting their employees the option to keep current health insurance plans. Although the small group market is currently defined as 1-50 employees, that definition is set to expand to 1-100 employees in 2016. The new regulations would prevent employers with 51-100 employees from keeping their current health care plans. Plus, the new mandates would cause rates for health care plans to dramatically increase.

However, the PACE Act will allow individual states to decide whether or not to maintain the previous definition of small group market as employers with 1-50 employees.

Contact AWS Insurance today to schedule an appointment with one of our agents, specializing in corporate health insurance, to protect your company from this new legislation.

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Melinda Martin

Account Executive

Melinda began her insurance career in 1985 with Alexander & Alexander where she received her Property & Casualty and Life & Health license. Since then she has worked at various agencies in the New Orleans area and in California as a senior account manager for Employee Benefit Plans.  While in California, she was also the Membership Director for the Burbank Chamber of Commerce. Melinda joined the AWS team in July of 2015.

Michael A. Seeling

Vice President

Graduated from the University of Louisiana at Lafayette with a B.A. in Insurance Risk Management and is a graduate of Archbishop Rummel High School in New Orleans. He joined AWS in October of 2008 and has been awarded the Patient Protection and Affordable Care Act Certification (PPACA). Additionally, he is working towards his Certified Insurance Counselor (CIC), Registered Health Underwriter (RHU), and Registered Employee Benefits Consultant (REBC) designations. He is also a member of the National Association of Health Underwriters (NAHU), National Association of Insurance Financial Advisors (NAIFA), and is an active member of the Fore!Kids foundation.

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