TX State Updates - 2015 Jan 20 No.01

On Oct. 13, 2015, the Texas Department of Insurance (TDI) released a new FAQ in response to the passage of the federal PACE Act (HR 1624). In the FAQ, the TDI clarifies that no action is necessary by the Texas Legislature or TDI to honor the current small employer group definition of up to 50 employees because the Insurance Code was never amended to reflect the PPACA-mandated increase in small employer group size up to 100 employees.

The TDI also used this opportunity to remind interested parties that in 2013, the Texas Legislature enacted SB 1332, which maintains the Texas definitions of small and large employer and removed a requirement that only “eligible” employees be counted. It is important to note that the PACE Act deals only with from which market (small or large) an employer must buy its plan. It does not alter any in way the PPACA employer mandate that requires an employer with 50 or more full-time equivalent employees to offer an affordable, minimum value plan or face penalties. That federal requirement? continues