President Signs PACE ACT Changing Small Group Definition
On Oct. 7, 2015, President Obama signed The Protecting Affordable Coverage for Employees (PACE) Act that amends the Affordable Care Act (ACA) definition of a “small employer” for the purpose of purchasing health insurance coverage.
Small Group Market Expansion
Most states have historically defined “small employers” as those with 50 or fewer employees for purposes of defining their small group health insurance market. Effective for 2016 plan years, the ACA expanded the definition of a “small employer” to include those that employed an average of between one and 100 employees. The PACE Act eliminates the ACA’s new definition and gives states the option of expanding their small group markets to include businesses with up to 100 employees.
Summary
Obviously employers with well over 100 employees are not affected by this act, and employers with under 50 employees would generally be considered part of the small group market regardless of these changes. Employers in the range of 50-100 employees will need to consult with their employee benefits advisors and health insurance carriers to determine how this may impact their benefits and rates going forward.
At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your business objectives, takes into account state and federal laws, and capitalizes on incentives and innovative solutions now being offered.
Newton Electrical Supply
This spring we are pleased to spotlight one of our long time clients, Newton Electrical Supply. We would like to congratulate them as they celebrate their 50th anniversary in the electrical and lighting business!
Newton Electrical has built a great reputation for superior customer service and quality products. They offer their customers a level of service over and above that of their competitors.
In addition to providing outstanding products and service, they are proud supporters of Habitat for Humanity’s ReStore. Their donations help build numerous homes in the surrounding communities.
Congratulation’s Newton Electrical and Happy 50th from your friends at Cleary Insurance. We wish you continued success!
Notice to Fireman’s Fund Policyholders
ACE Private Risk Services purchased the renewal rights for the Fireman’s Fund Personal Lines book of business.
Effective August 1, 2015 Fireman’s Fund policyholders will be converted to ACE Private Risk Services. ACE is a leader in financial strength among High Net Worth insurance carriers.
ACE Private Risk Services was created from a renewal rights conversion of the Atlantic Mutual business. ACE Group has completed over 10 similar transactions in the last five years alone, and is well prepared to convert the Fireman’s Fund business.
The strength, scope, and expertise of the combined teams will offer clients in all facets, including underwriting, claims, service, and risk consulting.
The vast majority of our Fireman’s Fund clients will receive replacement policy offers from ACE Private Risk Services at their next renewal.
If you have any questions or concerns regarding this change, please reach out to your Account Executive for assistance.