Beginning in 2018, Massachusetts has implemented a new Employer Medical Assistance Contribution (EMAC) Supplement fee that may impact many employers. Generally speaking, an employer may be assessed a penalty if they have any employees that are enrolled in MassHealth (excluding the premium assistance program) or the subsidized coverage plan through the Massachusetts ConnectorCare program.
April 2018 is the first time that employers may find out if they are being assessed a fee under this program. In addition, it’s the first time ever that employers are taking steps to appeal these fees. The state of Massachusetts has published a number of resources that may help your organization understand the impact of the EMAC fee. Below are a few links that you may find helpful:
- Learn about the Employer Medical Assistance Contribution (EMAC) Supplement
- FAQ’s: Updates in Employer Health Care Contributions and Experience Rates
- Final Regulations
- One-Page Overview of the EMAC Supplement
Below is a brief overview of the EMAC Supplement Fee:
- Who Does the Fee Apply To: Employers with six or more employees in Massachusetts are subject to the EMAC Supplement. Employers will be liable if a non-disabled individual is enrolled in MassHealth (excluding the premium assistance program) or the subsidized coverage plan through the Massachusetts ConnectorCare program for at least 56 consecutive days and the employee has earned a minimum of $500 in the quarter.
- How Much is the Fee: The contribution is 5% of annual wages for each non-disabled employee, up to the annual wage cap of $15,000, for a maximum of $750 per affected employee per year.
- How to Find Out If You Owe the Fee: If applicable, your balance due will be generated on the quarterly summary statement in Unemployment Insurance (UI) Online portal under “EMAC Supplement.”
- How to Appeal the Fee: An appeal can be made through the UI Online portal, or via a paper form. An appeal must be filed within 10 days.
If your company is planning on appealing the fee, I encourage you to review this article from Mintz Levin, which provides additional details about the appeals process.
If you have any questions, please contact our team at 781-759-1222.