On June 9th, BCBSM announced that they are allowing an extension for a transition of companies with 50 to 99 employees into ACA-compliant plans.
According to the Vice President of Middle and Small Group Business at BCBSM, John Dunn, “Changes to ACA regulations accounts in March gave states the option to delay, for employers of 50 to 99 employees, their transition into small group ACA-compliant insurance plants until their plan renewal dates in 2017.”
By allowing companies with 50-99 employees to delay their transition, companies can keep their current health plan. These companies have two options going forward, they can continue their ACA-compliant plan, or choose to transition into an ACA-compliant small group plan.
A small group employee is defined by the ACA as an employer having fewer than 51 full-time equivalents. On January 1, 2014, the ACA regulations expand the definition to include all employees with fewer than 100 employees.
The extension will be applied to companies with renewal dates through October 1, 2016. Once the extension expires, all companies with 50-99 employees will be required to offer small group ACA-compliant plans to their employees effective on their renewal date.
Austin Financial Group will continue to work with clients over the next couple of years to evaluate client needs and determine the best course of action for clients and their employees.
