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Arkansas has clarified that it will retain the current statutory definition of a small employer as being one that retains 2 to 50 employees for purposes of small group health insurance issues.

The Arkansas Insurance Department made the distinction, however, that it will make an exception to that definition for purposes of the medical loss ratio (MLR) calculations under the Patient Protection and Affordable Care Act. The PPACA states that a small employer is one that has fewer than 100 employees, the department said.

The department will allow all insurers to use 1 to 100 employees for the purposes of determining the MLR for small group health insurance.

Source: Arkansas Insurance Department

Topics Commercial Lines Business Insurance