Arizona Health Insurance Practice Exam

According to the ACA, how many employees can a business have to be classified as a "small business" starting in 2016?

1. 25

2. 50

3. 100

4. 150

The correct answer is: 100

The classification of a "small business" under the Affordable Care Act (ACA) took shape in 2016, where the threshold was set at 1-50 employees. This range was established to help define which businesses would be eligible for various provisions under the ACA, such as tax credits for providing health insurance to their employees. The small group market is specifically designed for companies within this employee count, allowing them to access affordable coverage options. When considering the possible choices, while some might mistakenly identify other figures as the limit for small business classification, the correct understanding centers around the specific range defined by the ACA, which does not include a higher number of employees such as 100 or 150. Therefore, the classification is strictly 1-50 employees, solidifying how the ACA aimed to benefit smaller enterprises and align health coverage accordingly.