S. 1099: Protecting Affordable Coverage for Employees Act

By at 28 May, 2015, 10:15 am

The Honorable Tim Scott

United States Senate

Washington, D.C. 20510


The Honorable Michael Bennet

United States Senate

Washington, D.C. 20510


The Honorable Jeanne Shaheen

United States Senate

Washington, D.C. 20510


Dear Senators Scott, Shaheen and Bennet:

On behalf of the Small Business & Entrepreneurship Council (SBE Council) and our 100,000 members nationwide, I am writing to express strong support for S. 1099, the “Protecting Affordable Coverage for Employees Act” (PACE Act). This important measure will protect small businesses from potential health insurance rate increases stemming from a forthcoming rule change made by the Affordable Care Act (ACA).

As you know, health insurance costs are significant for small businesses. Your bill will help prevent higher premium costs that are expected from an ACA mandated change to the definition of the small group market, which occurs on January 1, 2016.

The mandated expansion of the small group market (to include employers with up to 100 employees) will increase premiums due to new rating rules and requirements. Choice of plans will also be affected. Repealing the ACA’s mandated expansion, as S. 1099 would do, provides states with the flexibility to determine their own group size in accordance with market conditions. Maintaining the existing small group market size will promote stability, enabling predictability when it comes to premium costs while allowing businesses to keep existing plans for their employees.

Thank you for your leadership on this important issue for small businesses. Please do not hesitate to call upon SBE Council if we can be of further assistance in advancing this critical piece of legislation.


Karen Kerrigan, President & CEO

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