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Benefits Newsletter - JULY 2007
Health
Care Reform Update - Employer Mandates for July 1, 2007
 Regulations have recently been finalized and adopted by the Division of Health Care Finance and Policy (DHCFP) for the next effective date of July 1, 2007 which will affect employers operating in Massachusetts along with individuals residing in Massachusetts.
Following are the main points of the Massachusetts Health Care Reform
regulations and as always, we are here to assist our clients in
understanding the law, how it affects them as employers, and to ensure
compliance.
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GET MORE INFO, ASSISTANCE, and FORMS...
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1) Health Insurance Responsibility Disclosure (HIRD) - REGULATION 114.5 CMR 18:00
**NEW**EMPLOYEE HIRD FORM: Each employee of an employer with 11 or more full time equivalent
employees (35 hrs/wk) that declines to enroll in his/her
employer-sponsored insurance or declines to use his/her employer's
Section 125 Plan must complete an Employee Health Insurance
Responsibility Disclosure (HIRD) form. The employer must provide a copy of the signed Employee HIRD Form to the employee and retain a copy for three years.
**NEW**EMPLOYER HIRD FILING: Employers with more than 10 employees (full and part time, seasonal
and
temporary, but not independent contractors) must file with
the Mass EOLWD as of September 30th and due by November 15th
annually about health insurance it offers to employees. The Employer HIRD Filing will not be a separate filing, but incorporated as part of the Employer FSC filing to the Mass EOLWD.
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2) Employer FSC (Fair Share Contribution) Filing - REGULATION 114.5 CMR 16.00
Although the FSC became effective October 1, 2006 which governs the
determination of whether an employer makes a fair and reasonable
premium contribution to the health costs of its employees or face a per
employee FSC of up to $295 annually, these recent regulations provide
filing requirements and payment procedures administered by the
Executive Office of Labor and Workforce Development (EOLWD).
Employers with 11 or more full time equivalent employees during the determination period from Oct 1 to Sept 30 must file an Employer FSC Filing annually by Nov 15 with the EOLWD.
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3) Employer Free Rider Surcharge - REGULATION 114.5 CMR 17:00
This regulation includes the method the DHCFP will use to assess a
surcharge on an employer that does NOT adopt and maintain a Section 125
Plan for health insurance payroll deductions and whose employees or
dependents of its employees receive health care paid for by the
Uncompensated Care Pool or Health Safety Net Trust Fund. Any employer
with 11 or more full time equivalent employees is subject to this "Free
Rider" surcharge, but with a qualified Section 125 plan in place, can
ensure they are protected and in compliance.
If you are unsure whether your plan is "qualified", fully covers your
all your employees, or if you need one at all, please do not hesitate
to contact us for assistance.
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