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Georgia Defines Small Employer Definition and Counting Methodology

Nov. 6, 2015

Georgia Defines Small Employer Definition and Counting Methodology

As a result of the October 7, 2015 passage of the Protecting Affordable Care for Employees (PACE) Act of 2015, each state must establish its own definition of “small group”.   This new law requires each state to select their own definition of small group, as long as it is not less than 50 employees or greater than 100 employees. Further, it is up to the state to clarify the counting rules to determine whether a group is a small group or large group.

Today, the Georgia Department of Insurance released its guidance on these topics.  Here is the summary:

  • Small group is defined as employers with 1-50 employees
  • The counting methodology will follow the ACA calculation to determine whether an employer is an applicable large employer (ALE), i.e. full-time and full-time equivalent employees averaged over the prior year and is applicable to plans on and off SHOP
  • Carriers may continue to use eligible employees for participation percentage purposes only
Please click here for access to a copy of the bulletin