Insights

NY State Updates - 2015 Jan 07 No.01


On March 16, 2015, the Department of Financial Services published FAQs for Small Group Expansion to 1-100 Employees. According to the FAQs, in the state of New York, the definition of "small group" for carrier rating purposes will be 1-100 employees as of Jan. 1, 2016. All non-grandfathered groups with 1-100 employees renewing on or after Jan. 1, 2016 must be issued small group coverage.

The FAQ establishes that New York will not adopt the HHS "transitional policy" (as explained in the March 11, 2014 edition of Compliance Corner) permitting groups with 51-100 employees to retain existing large group coverage for an additional year due to the possibility of adverse selection impacting the small group premiums.

Please note that this means an employer may be a "small group" for rating purposes while also a "large group" for employer mandate purposes.

NY Department of Financial Services FAQ