Employers of 11 or more full-time-equivalent employees (FTEs) will pay an annual Fair Share Contribution of up to $295 per employee if they do not make a “fair and reasonable” contribution to an employee health plan. Proceeds from the Fair Share Contribution go to health coverage for the uninsured.
The Free Rider Surcharge, managed by the Health Connector, is a tool intended to promote compliance with the Section 125 plan requirement. Companies without Section 125 plans whose workers and/or their dependents access medical care through the state's Health Safety Net may be assessed a penalty between 20% and 100% of the cost of these medical services, if those services, in total, exceed $50,000 in a given year.
Health Insurance Responsibility Disclosure (HIRD) (Managed by the Commonwealth Health Insurance Connector Authority)
Employers do not have to file an Employer Health Insurance Responsibility Disclosure (Employer HIRD) form at this time. Recent change in state law has transferred responsibility for collecting these forms to the Massachusetts Health Connector. Later in 2013, the Health Connector will provide guidance on how and when this filing will be submitted in the future.
Employers with 11 or more full-time equivalents must continue to obtain signatures on Employee HIRD forms from employees who decline offers of health insurance or Section 125 plans.
- This guide provides a high-level overview of the federal health reform law signed by President Obama on March 23, 2010 and how it may impact Massachusetts employers, with suggestions on where to find more information.