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Will my municipality be assessed because we do not provide health coverage to all employees?

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April 12, 2007


Q: Under the Health Care Reform legislation, will my municipality be assessed because we do not provide health coverage to all of our employees?

A:
Under the legislation, an employer will be subject to the “Fair Share Contribution” if it does not make a “fair and reasonable” contribution toward its employees’ health coverage. Pursuant to regulations issued by the Massachusetts Division of Health Care Finance and Policy, an employer will be considered to be making a “fair and reasonable” contribution if at least twenty-five percent of its full-time employees are enrolled in its group health plan, and the employer is making a contribution toward their coverage.

Alternatively, an employer will be exempt from the Fair Share Contribution if it offered to pay at least thirty-three percent of the premium cost of any group health plan offered by the employer to its full-time employees who were employed for at least 90 days during the period from October 1, 2006, to September 30, 2007.

Answer provided by Paul Mulkern, an attorney who represents municipalities in the area of labor and employment law.