Mid-sized Businesses (51-99 employees)
While many provisions of Health Care Law go into effect in 2014, several provisions affect businesses and your employees’ health benefits plans now. Some changes are required for all plans, while others may be optional for customers if their plan meets certain qualifications to be considered “grandfathered.” Read grandfathered health plans’ frequently asked questions. The Health Care Law defines small groups as those with 2-100 full-time equivalent employees. However, the law allows states to modify the number that qualifies as small businesses to 2-50 employees for 2014 and 2015.
Most states, including the Commonwealth of Pennsylvania, are choosing that option and will classify small businesses as those with 2-50 full-time equivalent employees. Starting in 2016, businesses in every state with 2-100 employees will be classified as small businesses.
Under new rules announced in February 2014 by Treasury Department officials, employers with 50-99 workers (considered mid-sized employers) will be given until 2016 — two years longer than originally envisioned under the Affordable Care Act — before they risk a federal penalty for not complying.