State health insurance legislation (Chapter 58 of the Acts of 2006) enacted in April of 2006 contain obligations for Massachusetts' employers who employ eleven (11) or more full-time equivalent (FTE) employees. Employers meeting this minimum employment threshold must file a Fair Share Contribution (FSC) report.
Employers with eleven (11) or more FTE employees who do not make a "fair and reasonable contribution" to their employees' health insurance, as defined in Division of Health Care Finance and Policy (DHCFP) regulation (114.5 CMR 16.00), are required to pay a per-employee FSC to the Commonwealth Care Fund, payable to Department of Unemployment Assistance (DUA).
The determination of an employer's liability for payment of the FSC is based on self-reported data filed by the employer. All data filed by the employer is subject to audit and/or validation by DUA and/or other agencies of the Commonwealth.
Requiring an employer to file does not mean that the employer will owe a contribution. That determination is made when the employer files and provides the information required by law and regulation. In fact, many employers required to file the FSC report with DUA will not be liable to pay the FSC.
For 2007 and 2008 annual filings, employers liable to pay an FSC were required to pay up to $295 per FTE employee. Those employers were given the option to pay the full amount by November 15, or to choose a semi-annual or quarterly payment schedule with due dates established by DUA regulation.
For 2009 quarterly filings, FSC rate is 25 percent of the annual FSC rate applicable to quarterly reporting period. This rate is $73.75 per FTE employee per quarter. In quarterly FSC filing, liability is based upon an employer's circumstances each quarter, rather than on a year as a whole.
Specific filing details may be obtained via DUA's website: Go to https://fsc.detma.org and type in your DUA number, verify your employer information, select the appropriate filing period, and click on "Filing Instructions." Print and read these instructions prior to filing FSC.
For more information about the particulars of filing including important reporting periods, timely filing dates, payment methods and links to appropriate regulations that will prepare you for FSC filing, go to FSC Regulations, Frequently Asked Questions and Filing Questions .