Congress Repeals ACA Cap on Small Group Health Plan Deductibles

On Monday, March 31, 2014, the House and Senate passed legislation that eliminates the maximum annual deductibles allowed for small employer group health plans (currently $2,000 individual/$4,000 family) imposed by the Affordable Care Act (ACA), effective retroactively to initial PPACA enactment (March 23, 2010). President Obama is expected to sign the bill into law this week.

The impact of this legislation should be pretty significant for small employers. Many of our clients had long used high deductible plans paired with HRAs and HSAs to keep premiums at a minimum while taking on a small amount of claims risk or employer contributions. This legislation should allow significantly more flexibility in design and contributions once again. Stay tuned for more details as they become available.

Posted on April 03, 2014 by Ben Cohen, CEBS, Practice Leader, Health and Welfare Benefits