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Massachusetts Reduces Obligation to Provide Mandatory Health Insurance

In an effort to help small employers, Massachusetts reduced the number of employers obligated to provide health coverage under the state’s health insurance expansion law. The requirement that employers cover at least 25% of their workforce and pay a minimum of 33% of the premium will only apply to employers of 51 or more employees under the revised rule. For employers of 11 or more, the current requirement that they meet either the coverage standard or minimum payment standard will remain unchanged. Employers of 51 or more will not have to meet the minimum premium payment standard if 75 percent of their workers are enrolled in the company health plan. The penalty for failing to make the “fair share employer contribution” for health coverage remains $295 per employee per year.

Brody and Associates regularly advises management on complying with state and federal employment laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or (203) 965-0560.