Small Employer (Health Care) Law and Legal Definition

A small employer in connection with a group health plan means an employer, who with respect to a calendar year and a plan year has employed an average of at least one but not more than 100 employees on business days during the preceding calendar year and who employs at least one employee on the first day of the plan year. In case of a small employer who was not in existence throughout the preceding calendar year, the determination of whether such employer is a small employer will be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current calendar year. Further, it is to be noted that in case of a group health plan which provides health insurance coverage solely through a contract with a health insurance issuer, a small employer with respect to a calendar year and a plan year, means an employer who employed an average of at least two but not more than 50 employees on business days during the preceding calendar year and who employs at least two employees on the first day of the plan year.