In a rare moment of bipartisan support for the embattled health care law, President Obama signed the Protecting Affordable Coverage for Employees (PACE) Act into law, which gives smaller clubs much-needed relief from aspects of the Affordable Care Act (ACA). It marks the first time in four years that a change has been approved to alter the ACA. The House and Senate overwhelmingly passed the PACE Act, and the president, normally a combatant to ACA revisions, signed the bill into law.
The PACE Act allows clubs with 50 to 100 full-time employees (FTEs) to purchase health care packages from the more affordable large-group insurance market instead of being forced into the small-group market. The small-group insurance market offers fewer, more restrictive health care options and has dramatically higher premium rates compared to the large-group market. Had the PACE Act not passed, these clubs would have had to offer their employees plans from the small-group market by Jan. 1, 2016.
By staying in the large-group market, clubs with 50 to 100 FTEs can avoid the administrative and financial burdens presented by the small-group market. Now these clubs can keep their current large-group plans, which better fit the needs of many clubs.
The National Club Association, along with our allies on the 50-100 Coalition, has been a leader on this reform. In a recent statement, the 50-100 Coalition praised Congress for their work in changing the ACA. NCA Vice President of Government Relations and General Counsel Brad Steele calls the PACE Act a “common sense” reform that “reveals both sides can work together on appropriate changes to the ACA.”
Bottom Line
The PACE Act is a significant victory for the industry as smaller clubs can more easily comply with the many rules and regulations mandated by the ACA. It also shows that there is potential for bipartisan support for changing aspects of the bill. Smaller clubs can now breathe a sigh of relief as they can keep their current health care plans and avoid being required to offer more restrictive and costly coverage options.
NCA is currently is working on a number of amendments, including the SAW Act, which seeks to change the ACA’s definition of “full-time” from 30 hours worked per week to 40 hours and the STARS Act, which will help in classifying and counting seasonal workers under the ACA.
To learn more about how NCA is fighting on behalf of clubs, please visit our advocacy webpage or contact Vice President of Government Relations and General Counsel Brad Steele at [email protected].