While many employers continue to prepare for the requirements of the Federal Affordable Care Act, they should also be aware of some recent changes to the Massachusetts Health Care Reform law. Last month, the Massachusetts legislature repealed the Fair Share Contribution (FSC) provision of the law effective July 1, 2013.  Under this law, Massachusetts employers with 11 or more full-time equivalent employees were required to either offer group health insurance to their full-time employees or pay a penalty of up to $295 per employee per year.

The legislature also repealed the requirement that employers collect Health Insurance Responsibility Disclosure (HIRD) forms from employees who declined to enroll or participate in health insurance or cafeteria plans offered by their respective employers, effective July 1, 2013.

While the Commonwealth has repealed the FSC and HIRD requirements, the Department of Unemployment Assistance (DUA) will continue to enforce those FSC and HIRD obligations that were in effect until June 30, 2013.  As a result, employers who are required to submit any filings for the periods ending on or before June 30, 2013, must still do so as the DUA is expected to continue to audit employer compliance with these obligations.  

Although the legislature repealed the FSC and HIRD requirements, it established two new employer requirements.  First, employers with 11 or more full-time equivalent employees (FTEs) must notify all employees on a form to be prescribed by the Massachusetts Health Connector of the employer's compliance with certain components of the law, and the opportunity for eligible employees to enroll in the employer's sponsored group health insurance plan and the employer's Section 125 plan. Second, the legislature has enacted a new Employer Medical Assistance Contribution (EMAC).  This new assessment takes effect on January 1, 2014, and will require employers with more than 5 employees to pay up to 0.36% of employees' wages up to the "taxable base wage" set under the Commonwealth's unemployment insurance law, which is currently $14,000 per employee.  The 0.36% EMAC amounts to approximately a $50.00 annual assessment per employee.