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NRCA Applauds Approval of PACE Act

October 2015

NRCA commends Congress for approving the Protecting Affordable Coverage for Employers (PACE) Act, (H.R. 1624/S. 1099) to reduce burdens from the Affordable Care Act (ACA) on many midsized employers. NRCA strongly supports this legislation and is pleased the House approved it with strong bipartisan support in September. The Senate followed suit Oct. 2. NRCA urges President Obama to sign this bipartisan legislation into law.

As written, the ACA requires that all state small group insurance markets, which have traditionally covered firms with 1-50 employees in most states, be expanded to cover firms with up to 100 employees beginning on Jan. 1, 2016. This federal mandate would result in many firms with between 51 and 100 employees having to change health plans and could result in increased premiums for such firms. Higher costs for employers and employers would be likely because most state small group insurance markets have many more mandates and regulations than large group markets.

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. 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.

NRCA will continue working in support of legislation to reduce regulatory burdens that drive up the cost of health care benefits for employers and their workers.

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