The Commonwealth of Massachusetts has established a Section 125 (“cafeteria”) plan for the state’s employees who are not eligible to receive state-subsidized health insurance through the Group Insurance Commission to purchase health insurance on a pre-tax basis from the Commonwealth Choice Program available through the Commonwealth’s Health Connector Authority. (See eligibility below.)
This plan offers two significant benefits. First, through Commonwealth Choice, you can choose from several health insurance carriers, grouped into three different benefit levels to help you compare. Commonwealth Choice plans are offered by major Massachusetts health insurance companies. All Commonwealth Choice plans carry a Seal of Approval from the state’s Health Connector. This Seal of Approval ensures high quality and good value. Second, after you choose a plan, the Commonwealth will arrange for you to pay for this health insurance coverage by making pre-tax payroll deductions from your bi-weekly paycheck. This means that you will not have to pay state or federal income taxes on the cost of your health insurance premiums. While the Commonwealth will not contribute to the cost of the plan you choose, purchasing plans on a pre-tax basis can make health coverage more affordable. We encourage you to take advantage of this program!
This information is provided by the Group Insurance Commission.