Small Employer Deductible Limit Repealed

Small Employer Deductible Limit Repealed

The ACA requires that deductibles on small employer health plans not exceed $2000 single and $4000 family.  Many employers who offer HDHPs had been concerned about being required to lower their deductible upon renewal in 2014, thus causing higher premium.  

President Obama signed into law on April 1, 2014, the Protecting Access to Medicare Act.  Section 213 of the law eliminates the deductible limit for small group health plans.  Health plans still need to meet certain actuarial values and have maximum out-of-pocket limits of $6350 single and $12, 700 family in 2014, but small employers will have greater flexibility in plan designs as a result of this new legislation. 

The main purpose of the law is to prevent double-digit cuts in Medicare reimbursements to physicians this year.