ACA Small Group Size Limit

There are two policies that determine the group size your business falls under. State law and the ACA both have their own definitions explaining how they determine a company’s group size so health insurance plans can adequately and fairly meet the needs of all citizens. The standards of local, state and federal laws may change occasionally to assure satisfactory health coverage at affordable costs.

The ACA obeys the group size limits set by the state. Otherwise, they calculate the amount of full-time employees working for your business to decide its group size according to their own standards. The ACA considers a business to be large in size if it has 51 or more employees. However, some states consider any business facility with 101 or more employees as large in size. California recently changed their standards for size limits from 51 or more employees to meet large group standards, to 101 or more employees for large group size consideration.

Why Meeting the State’s Small Group Size Limit Is Good for a Business

Being a small business owner has its advantages. The benefits for businesses that fall under small group size standards receive different small group health insurance perks than those declared to meet large group size standards under state law and the ACA. Nonetheless, these laws are set so that fair and affordable health insurance is available to individuals of all income levels, making it easier for them to seek proper medical attention.

Small businesses looking for comprehensive group health plans and employee benefit packages will notice that they have a few more options to choose from. Health plans for smaller businesses are easier to modify and enhance according to the needs of the company’s employees. Licensed insurance brokers are particularly great at tending to the needs of a business, negotiating with leading insurance agencies to get the right group health plan at the right cost.

Meeting the requirements of the insurance laws is easier for small businesses. This qualifies the business for tax breaks and other benefits due to their desire to comply with the laws and to offer their employees affordable health insurance. Many small businesses look forward to the leniency during tax season.