Employer Information

The federal health reform law makes changes across the health care system in the United States that will impact almost every facet of the health care system - consumers, providers, insurers, and employers. While Massachusetts health reform served as a model for some aspects of national reform, there are a number of differences that will create new opportunities and responsibilities for Massachusetts employers.

The Fair Share Contribution (FSC) is a policy enacted under Chapter 58 of the Acts of 2006 which requires that an employer with 11 or more full-time equivalent employees (FTEs) make a "fair and reasonable" contribution toward the health care costs of its workers.

Under Massachusetts health reform, employers with 11 or more FTEs are required to regularly submit information via the "Employer HIRD," an electronic form that collects information about their compliance with the M.G.L. c. 151F requirement to adopt and maintain a Section 125 Cafeteria Plan.

The Free Rider Surcharge, managed by DHCFP, 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.

Analytics and reports developed by the Division concerning employers and health care reform, including the annual "Fifty Plus" report, reports on the Fair Share Contribution, the Massachusetts Employer Survey, and other resources.

Use http://www.mass.gov/dhcfp/employer to access this page directly.