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Health Care Reform Overview #6 – Equal Contributions for All Employees Mandated



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 # 6 – Equal Contributions for All Employees Mandated

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 Law, Chapter 58, applies to firms with 11 or more employees. The regulations mandate that health insurance carriers ascertain from current and prospective clients that they make "equal" contributions for eligible employees. Specifically:

  • If they do offer a plan, an employer must agree to offer health insurance to all full time employees who live in Massachusetts and;
  • The employer can not contribute more toward the premium for a highly compensated employee than they do for a lower compensated employee.
Employers can make different contributions:
  • For different plans (for example, one contribution level for an HMO plan and a different contribution for a POS plan), or;
  • One contribution level of "Single" coverage and a different level for "Family" coverage or;
  • Different levels for people who participate in company-sponsored health & wellness programs or;
  • If there is a written program, dated prior to 1/1/07, which bases premium contributions on "years of service", as long as they are not discriminatory.
Employers do not have to offer coverage to retirees, part-time, seasonal or temporary employees. None of the Chapter 58 Massachusetts Health Care Reform regulations apply to participants in a collective bargaining agreement.

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. For this week's issue, you might want to start with your health care provider or health care broker. Two web sites you might want to visit for information are:

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 the site.

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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