New Massachusetts Health Care Assessment

Governor Baker recently signed a law that will impact Massachusetts employers with 6 or more employees (full time or part time) to become effective January 1, 2018.  The law is still awaiting proposed regulations, but we thought it might be useful to share some of the information today.

  • Currently, Massachusetts employers pay a fee known as the Employer Medical Assistance Contribution (EMAC).  This fee will increase from $51 per employee to $76.50 per employee.
  • The law establishes a new assessment on employers for any employee who enrolls in MassHealth or subsidized insurance coverage through the Mass Health Connector.  The assessment is equal to 5% of wages on the first $15,000 paid and is capped at $750 per employee.  Regulatory guidance will clarify whether the assessment will apply to part-time employees even if they are not eligible for employer group coverage or just full-time employees.  It is likely that the assessment will be paid on a quarterly basis similar to unemployment insurance.

Additional information will be available once the proposed regulations are released.

If you have questions about this matter or any others related to employee benefits, please call us toll free at (866) 724-0008 or click the link below.


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