Employee Benefits Advisory: Recent Developments under the Massachusetts Health Care Reform Act Affecting Employees


The Massachusetts healthcare reform act1 (the “Act”) imposes healthcare-related requirements on individuals, providers, insurers and employers. When signed into law in April 2006, the Act was generally regarded—by supporters and detractors alike—as an audacious experiment, and it has since served as a model for other states and even some nascent Federal proposals. From the outset, the Act’s long term financial health was a matter of speculation, and it was understood that changes would be required.

This advisory explains the following recent developments under the Act as they affect employers, either directly (in the case of the fair share contribution requirement) or indirectly (in the case of the definition of “minimum creditable coverage”):

. Changes to the timing of payments under the Act’s fair share contribution (FSC) requirement made in a supplemental budget bill;

. A recent proposed regulation issued by the Division of Health Care Finance and Policy, which modifies the determination of which employers are subject to the FSC requirement; and

. Changes to the definition of “minimum creditable coverage” (MCC) recently proposed by the Commonwealth Health Insurance Connector Authority (the “Connector”).

Click here for a copy of An Employer’s Guide to the 2006 Massachusetts Health Care Reform Act, which provides a comprehensive explanation of the provisions of the Act affecting employers with employees at Massachusetts locations.

Please see full advisory for more.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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