Employee Benefits Advisory: Division of Health Care Finance and Policy Issues New Regulation Implementing Fair Share Contribution Requirement


The Massachusetts health care reform act (the ?Act?)1 imposes health-care-related requirements on individuals, providers, insurers, and employers. While there are a series of employer mandates, it is the ?fair share contribution? or ?FSC? requirement?under which an employer must either make a fair share premium contribution to a group health plan or pay an annual assessment of $295 per full-time-equivalent employee?that has attracted the most attention. The Massachusetts Division of Health Care Finance and Policy (DHCFP) issued a proposed regulation some time ago that would make compliance with the FSC requirements more difficult. In a recently issued final regulation (the ?final regulation?), the DHCFP adopted the essential features of the proposed rule, with some changes. Recent supplemental budget legislation2 also changed the frequency of the FSC reporting and payment period from annual to quarterly. This change is reflected in the final regulation.

This client advisory explains the key features of this newly minted final regulation. Please see An Employer?s Guide to the 2006 Massachusetts Health Care Reform Act for a comprehensive explanation of the provisions of the Act affecting employers with employees at Massachusetts locations.

Please see full advisory for more information.

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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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