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Delay of Small Group Expansion Mandate

Governor Charlie Baker Announced last Thursday that the Federal Health Care Reform mandate, which would expand the definition of “small group” up to 100 employees, has been delayed for at least a year. Governor Baker cited “price shock” for employers with between 50 and 100 employees as a reason for Massachusetts to seek a waiver in the new rule.  Governor Baker had originally sought a permanent waiver but was granted a delay of the expansion by federal regulators instead.
According to our sources, insurance carriers will have the option of whether or not to delay the expansion of small group, and some may move ahead with the change regardless of the announcement.  At Hollister Insurance, as we prepare for 2016 renewals, we will be working closely with clients in the development of a renewal strategy that works best given the regulatory environment.
Overall we feel that this is a step in the right direction, although we still support a permanent waiver which would allow Massachusetts state government, along with the MA Division of Insurance with the flexibility in defining the size of a “small group.”
More information on this announcement can be found on Governor Baker’s website.