In 2016, much to the alarm of businesses across the country, the Affordable Care Act (ACA) will expand the definition of the small group market to include all employers with 1-100 employees—adding employers in the 51-100 employee category.

Two pieces of legislation are currently pending in Congress that would amend the ACA so that employers with 51-100 employees are not designated as small employers for purposes of health insurance markets. In the Senate, Sens. Tim Scott (R-South Carolina) and Jeanne Shaheen (D-New Hampshire) have introduced S.1099, the “Protecting Affordable Coverage for Employees Act” (the PACE Act). In the House, Reps. Brett Guthrie (R-Kentucky), Markwayne Mullin (R-Oklahoma), Tony Cardenas (D-California) and Kyrsten Sinema (D-Arizona) have introduced the same legislation, H.R. 1624, the “Protecting Affordable Coverage for Employees Act.” Both bills have broad bipartisan support and would give states the flexibility to determine the size of the small group market.

Last week, the House Energy and Commerce Subcommittee on Health held a hearing on H.R. 1624. The committee discussed the importance of maintaining the definition of small employer as one with 50 or fewer employees and heard supportive testimony from Monica Lindeen, National Association of Insurance Commissioners (NAIC) president and Montana insurance commissioner.

In her testimony, Lindeen noted, “If this legislation is not signed into law, a series of market disruptions could occur. These regulations could lead some employers with younger or healthier employees to self-insure as a way of avoiding higher premiums, which could result in adverse selection in the small group pool." The NAIC has made passage of this legislation a top priority. Although no date for a vote on this legislation has been set yet, floor action could occur in the coming weeks and is expected at some point this fall.

The Big “I” recently joined the 50-100 Coalition, a group of business organizations, in an effort to pass this important legislation regarding the small group market. The mission of the coalition is to protect businesses and employees by giving states the flexibility to maintain the existing definition of a small group market so businesses can keep their current health care plans. The Big “I” will continue working with the coalition and members of Congress and their staffs to get this legislation signed into law.

Wyatt Stewart is Big “I” director of federal government affairs.