Bills
| 3.23.22

Modifying the Affordable Care Act to Protect the Small Group Market (H.R. 1624)

Do you support or oppose this bill?

What is H.R. 1624?

(Updated July 19, 2017)

This bill was enacted on October 7, 2015

This bill would include businesses with 51 to 100 employees as large employers in the Affordable Care Act’s definition of large businesses for the purposes of health insurance markets. States would have the option to treat them as small employers so that they can purchase plans from the small group market, as they are currently allowed to let them participate in the large group market.


The current definition of small businesses is set to expand from 1 to 50 employees to 1 to 100 employees in January 2016. This will cause employers of 50 to 100 employees to have obtain new health care plans in the small group market that conform to broader regulations if they offer plans to their employees, which will raise coverage costs.

Argument in favor

This portion of the Affordable Care Act was poorly designed, and this bipartisan change will help businesses of a certain size avoid increases in the cost of providing coverage.

Argument opposed

The broader definition of small businesses should be allowed to go forward as scheduled, as there is nothing wrong with the way the Affordable Care Act was written.

Impact

Businesses employing between 50 and 100 employees and their workers, state governments, and the federal government.

Cost of H.R. 1624

The CBO estimates that this legislation would increase revenue by about $400 million over the 2015-2025 period.

Additional Info

In-Depth: This bill was introduced by Rep. Brett Guthrie (R-KY) and Rep. Tony Cardenas (D-CA) to help maintain the small group market for health insurance as it’s currently structured. Rep. Guthrie added that employees may face unintended consequences if action isn’t taken:

“If this policy is not changed before January, employees will see increased premiums and a disruption in their coverage… Expanding the small group marketplace limits choice and promotes instability in the insurance market.”

There are currently 232 cosponsors who have signed on to support this bill — more than the 218 votes required to pass a bill in the House of Representatives.

Media:

Summary by Eric Revell
(Photo Credit: Flickr user Official U.S. Navy Imagery)