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Overview

Health Care is a very important topic. The new health care law is about to be implemented with many aspects of the law becoming effective July 1, 2007. It is very complex, and while the Chamber continues to believe some changes to it are called for, most of the aspects of the law have been agreed to and will become effective soon.

In order to help our members comply with the law, and to make it easier for those members who want to avail themselves, or help their employees take advantage of the new offerings for insurance under the law, we are embarking upon a communications campaign. The following is the first in a series of 8 bulletins that will be issued on a weekly basis to keep you informed about this important piece of legislation.

Health Care Reform Overview #1

A bulletin from the Affiliated Chambers of Commerce of Greater Springfield, Inc. on the Massachusetts Health Care Reform Law, Ch. 58

Did you know...that this law, passed in 2006, has been slowly implemented and continues to evolve, but will be fully implemented on July 1, 2007.

This bulletin, the first in a planned series of eight, is to ensure, you, our Chamber members know that this is indeed a law, it provides you with some basic information, and alerts you to professionals and organizations where you can go to have your questions answered and obligations fulfilled.

These bulletins are not intended as legal or tax advice. You will be offered resources that you should contact for specific advice on how this law will affect your business.

Did you know?
As an employer with 11 or more full time employees you are probably already in compliance with the new regulations if:

• At least 25% of your full time employees (35 hours or more per week) are covered by your or some other qualified plan (such as a spouse’s plan), or
• You pay atleast 33% of employee only premium for health coverage, and
• You offer a Section 125 plan, set up by an employer to allow employees to pay for health insurance on a pre-tax basis, and
• You allow employees with dependents up to age 26, or for 2 years after the dependent loses IRS dependent status (whichever comes first) to access your plans, regardless of their “student status” and
• Your contributions to the health insurance premiums do not discriminate in favor of highly compensated employees.

These requirements, and many others of this law, go into effect on July 1, 2007. Over the next several weeks, the Chamber will highlight various aspects of this law. Several new health care insurance products have been developed and will be available for businesses that have not provided health insurance in the past. These products become available May 1, 2007.

While there are many sources of information available, including those of your attorney, accountant, insurance carrier or benefits advisor, we will begin this series by giving you two very important sites.

www.hne.com is the Health New England Web site that has an excellent document entitled Inside HNE, a Resource for Decision Makers, Special Edition.

www.mass.gov/connector is the official web site of the Massachusetts entity created to oversee all aspects of this law. They have an "Employer Handbook" on site, dated February 15, 2006 as a draft that provides you with formulas to determine some of the above requirements and has frequently asked questions and answers.

If I can help you find answers, contact me at ciuffreda@myonlinechamber.com.

Sincerely,
Jeffrey Ciuffreda
Vice President of Government Affairs