Timeline for Employer and Employee Compliance under the Massachusetts Health Care Reform Act

The Massachusetts Health Care Reform (HCR) Act was designed to increase access to health insurance for both individuals and employers. The Act is almost ready to take effect and has imposed a timeline for employers and employees in order to ensure adequate coverage.

Effective May 1, 2007
The Commonwealth Connector just launched their new Commonwealth Choice program, enabling individuals to review and enroll in a health plan that works best for their needs.

• Individuals may inquire about these new Commonwealth health plans by calling toll-free at
1-877-MA-ENROLL (1-877-623-6765)

• To view the insurance products unanimously endorsed by the Commonwealth Health Insurance Connector Authority Board of Directors, click here

• To view the Employee Notice available for employers to distribute to their employees, describing the Section 125 plan process, click here

Effective July 1, 2007
• All Massachusetts residents age 18 and over are required to have health insurance

• All Massachusetts employers with 11 or more employees in Massachusetts must adopt and maintain a qualified Section 125 plan. For those who fail to do so and who have employees or dependents who receive “state-funded health services”, they may be subject to the Free Rider Surcharge. Recently, the Section 125 regulations have been amended and the rules for calculating the number of employees have changed. To see a quick overview of the new employee calculation, click here

• Employers are obligated to establish or amend existing Section 125 plans to accommodate non-eligible (part time/contract) employees and must sign a Terms and Conditions Agreement by July 1, 2007

• Employers must file an Employer Health Insurance Responsibility Disclosure (HIRD) Form confirming that they offer their employees a Section 125 plan that complies with Connector regulations

• Employers must collect an Employee HIRD Form for each employee who declines health care coverage, and retain the form for three years

Effective December 31, 007
• Employees must prove they have mandated health insurance or risk losing their personal exemption when filing their 2007 state personal income taxes

At Telamon, we understand that the new HCR legislation can be confusing and we are here to help. Join us on May 23rd  for our  Massachusetts Health Care Reform Seminar, an informative and interactive session that will answer your questions about the implementation of this groundbreaking law.

Coming up next: Frequently Asked Questions about the Massachusetts Health Care Reform Act.

In the fifth and final installment of our special educational series, we will review FAQs about HCR and provide useful online resources and links for the benefit of both employers and employees alike. If you would like to read prior issues from our educational series, click here.