NV State Updates - 2015 Jan 20 No.01

On Oct. 9, 2015, the Nevada Department of Business and Industry, Division of Insurance, published Bulletin 15-007 regarding the definition of small employer under Nevada law. Current state law defines ‘small employer’ as “an employer who employed on business days during the preceding calendar year an average of at least 2 employees, but not more than 50 employees . . . .” This will remain the case since Nevada law was written such that the state’s definition will have the meaning ascribed to it in 42 U.S.C. 18024(b)(2).

As background, PPACA included a provision to change the definition of small employer from 1-50 to 1-100 employees effective Jan. 1, 2016. On Oct.7, 2015, the President signed the PACE Act, repealing the mandated small-group expansion from groups of up to 50 employees to groups of up to 100 employees. Thus, unless a state has expanded its definition of small employer, PPACA’s insurance mandates would not apply to employers in the 51-100 group in that state.

In light of the PACE Act’s passage, the bulletin informs carriers that they may not modify previously approved small group rates and policy forms for 2016. Although these rates and policy forms are locked down for Jan. 1, 2016, carriers may request revisions to be effective April 1, 2016, if submitted to the Department for review no later than Dec. 1, 2015.

Bulletin 15-007 »