AUI is pleased to share with you that President Obama has signed into law the Protecting Affordable Coverage for Employees (PACE) Act. The House of Representatives passed H.R. 1624 on September 28 through voice vote and the Senate, through unanimous consent, passed the legislation on October 1. Organizations that AUI belongs to including NAHU were a leading advocate for this legislation, along with other organizations in the 50-100 Coalition, and AUI would like to thank everyone involved for their efforts to pass this legislation.
The PACE Act repeals the mandated small-group expansion from groups of up to 50 employees to groups of up to 100 employees that was to go in to effect on January 1, 2016. This law gives states the flexibility to determine the size of their small-group market instead of being forced into the national standard. AUI has long very concerned that the combination of the new compliance requirements and the regulations for the new group size would cause dramatic change to the insurance policies of medium-sized employers.  As a result we belong to organizations such as the National Association of Health Underwriters (NAHU) who have continued to advocate for the enactment of the PACE Act to prevent this type of market disruption.

As we await the decisions of the states, AUI will continue to gather information with the carriers, state legislators and state insurance commissioners on implementation.  Please feel free to contact us with any questions.

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