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Health Care Reform Bulletin #2 - Determined Employee Level



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 second 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 #2 - Determined Employee Level

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

Did you know? The new Massachusetts Health Care Reform, Chapter 58, applies to firms with 11 or more employees. Do you have 11 or more “full time equivalent” employees? Not sure? Here is how the new regulations require you to verify:

Determine the sum total of all payroll hours from your firm between the dates of 10/1 to 9/30. You must include (but not limited to):
  • Regular pay, including vacation, sick, etc.
  • Part time pay (could be employees working part time most of the year)
  • Temporary pay (again for workers on your payroll)
  • FLMA
  • Short & Long Term Disability pay
As of this writing, different definitions of some of these terms are being used by various state agencies. Pages 2 and 3 of the Employer Handbook at www.mass.gov/connector are dedicated to this issue. There you will note that the Department of Unemployment Assistance is charged with promulgating regulations dealing with full-time equivalents.
  • Take this total, then divide by 1,820 (35 hours per week X 52 weeks)
  • If the answer is 11 or more, then your firm is subject to at least some of the regulations.
  • If the answer is less than 11, then your firm is not subject to the regulations. However, since the regulations include the Individual Mandate, which requires all Massachusetts residents age 18 + to have coverage, you as an employee of your company and your employees will still need to have health insurance coverage by 7/1/07 or individual penalties will be assessed.
NOTE: IF you know you have 11+ employees, you also know you are subject to the regulations and you are not required to do this calculation.

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. While there are many sources of information available, including those of your attorney, accountant, insurance carrier or benefits advisor, this series will attempt to give you websites to visit such as these two:

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

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