Congress tweaks ACA definition of ‘small business’

The U.S. Senate passed legislation this week intended to protect small and midsize businesses from increases in health insurance premiums, clearing the bill for President Obama’s expected signature (Source: “Health Law Revision Is Approved,” New York Times, Oct. 2, 2015).

The bill, approved this week in the House and the Senate by voice vote, eliminates a provision of the law that would have imposed tough, potentially costly new requirements on businesses with 51 to 100 employees.

At issue is a provision of the health care law that expands the definition of a “small employer” to include companies with 51 to 100 employees, subjecting them to stringent insurance regulation starting Jan. 1. States have historically defined small employers as those with 50 or fewer employees.

The bill preserves the traditional definition of “small group,” but allows states to expand it to include organizations with 51 to 100 employees if they want to do so.