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Impact of PACE Act in California

Oct 20, 2015

On October 1, 2015, legislation to repeal the Affordable Care Act provision to expand the definition of Small Group to 1-100 employees was approved by Congress.

Known as the Protecting Affordable Coverage for Employees (PACE) Act, the legislation keeps the Small Group definition current at 1-50 employees, while giving the states the choice to expand the definition to 100 employees. President Obama signed the bill into law on October 7, 2015.

California Law
California is one of a handful of states that enacted a statute changing the Small Group definition to 1-100 employees in 2016. This means it would take new legislation to change the definition back to 50 or fewer employees. The California legislature is out of session until January, and is not expected to make a change. Of course, anything is possible, as we've learned with the Affordable Care Act!

Making the Move to Small Group 2.0
Health Net of California, Inc. and Health Net Life Insurance Company (Health Net) have sent closure notices to groups with 51-100 employees in compliance with 90-day advance requirements. The letters tell them about their choices with Health Net's new Small Group 2.0 portfolio.

For questions, please ​contact a member of your b&p Sales Team - 888.722.3373.

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