Obama Signs First ACA Repeal Through Small Employer Legislation

President Obama signed the first repeal of any ACA provision through the rollback of the small insurance markets rule, which was slated to go into effect in 2016.

The law changes the definition of a small employer under the Affordable Care Act (ACA) from 100 employees or less to 50 employees or less with bipartisan support and will allow states to decide whether or not to expand the small group market beginning in 2016.

The law will also put $205 million into the Medicare Improvement Fund that was cut under the 2010 health care law.

The Protecting Affordable Coverage for Employees (PACE) Act (H.R. 1624) was introduced by Rep. Brett Guthrie (R-Ky.) and Rep. Tony Cárdenas (D-Calif.). The bill had the support of mid-sized businesses, which were concerned that if included in the small-group market they would be forced to seek new coverage, resulting in disruption in the market and higher premiums.