NM State Updates - 2015 Jan 17 No.01

On Oct. 27, 2015, Superintendent of Insurance Franchini issued Bulletin No. 2015-028, which addresses the definition of ‘small group’ in New Mexico in light of the PACE Act. 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, President Obama signed into law the PACE Act, which repeals 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.

New Mexico insurance statutes define a “small group” as an employer with 2 to 50 employees. As allowed under the PACE Act, New Mexico will keep the definition of small group at 2 to 50 employees. Thus, groups with 51 to 100 employees will continue to be rated as large groups and will not be required to switch to the small group market in 2016.

The Office of the Superintendent of Insurance will not accept adjustments to already approved rates for 2016.

Bulletin 2015-028 »