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Starting January 1, 2018, employers in Massachusetts will be subject to the new Employer Medical Assistance Contribution (EMAC) supplement fee. This fee generally applies to employers with 6 or more employees in Massachusetts. It primarily targets employers with employees who are enrolled in MassHealth or in subsidized ConnectorCare coverage.
In November 2017, proposed regulations were released. These regulations:
- Impose an additional fee (EMAC Supplement) on employers with employees covered under MassHealth (Medicaid) or who receive subsidized coverage through ConnectorCare
- Require Massachusetts employers to submit a health insurance responsibility disclosure (HIRD) form annually
EMAC Supplement Penalty
Here are a few key things to note about the proposed regulations:
- Employers must pay 5% of annual wages up to the annual wage cap of $15,000, or $750 per affected employee per year, for each non-disabled employee who obtains health insurance coverage from MassHealth (excluding the premium assistance program) or ConnectorCare.
- The EMAC Supplement will not apply to any employee who has MassHealth coverage as a secondary payer because such employees are enrolled in employer-sponsored insurance.
- Any required EMAC Supplement payment owed will be added to an employer’s Unemployment Insurance (UI) liability statement
- If an employer disagrees with the determination that they are liable for the EMAC Supplement, it may request an appeal hearing.
Employer Healthcare Coverage Form
The new employer healthcare coverage form (which is referenced in Bill H.4008) requires employers with 6 or more employees in Massachusetts to annually complete and submit a form indicating whether the employer has offered to pay or arrange for the purchase of health insurance and information about that insurance. More guidance on the form and when/how to file will be forthcoming.
Additional Information
A number of law firms, vendors, and other organizations have published articles regarding these proposed regulations that you may find helpful. Here are a few:
- Source: Parker, Brown, Macaulay & Sheerin
- Source: Mintz Levin
- Source: Commonwealth of Massachusetts
If you have questions about how this fee may impact your business, please contact the CBG Benefits team at 781-759-1222.
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