Insights

UT State Updates - 2015 Jan 20 No.01


On Oct. 9, 2015, the Utah Insurance Department published Bulletin 2015-9 regarding the definition of small employer under Utah law. Specifically, the bulletin reminds insurers that the definition of small employer in Section 31A-1-301 is preempted by Section 1602 of the PPACA effective Jan. 1, 2016.

In light of the PACE Act’s passage, and since Utah law has been drafted to be consistent with federal law, for plan years that begin on or after Jan. 1, 2016, small employers will be those who employed on average 1-50 employees on business days during the preceding calendar year and large employers will be those who employed an average of at least 51 employees on business days during the preceding calendar year. The bulletin provides that the number of employees shall be determined using the method set forth in 26 U.S.C. Section 4980H(c)(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. 1, 2015, the US Congress passed HR 1624, called the PACE Act. The PACE Act 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.

Bulletin 2015-9 »