In a major step toward realizing the vision behind the state’s landmark health reform law, the Connector Board of Directors approved new health plans proposed by seven major health insurers. These plans offer important, fundamental health benefits before or without any deductible costs. Plans this comprehensive have not been available at prices this low. The cost to consumers will be lowered further when they use pre-tax dollars to pay the premiums. The health reform law requires employers of 11 or more workers to offer “Section 125” deductions that allow for these pre-tax payments. The plans will be offered to consumers and businesses on May 1, 2007, as part of the new Commonwealth Choice program. July 1, 2007 is the effective date of the state’s universal participation requirement that obliges adults to carry health insurance.
| Employers - Employers with 11 or more full-time equivalent employees that do not make a “fair and reasonable” premium contribution for their employees’ health insurance will be subject to pay a Fair Share Contribution. The Fair Share Contribution will be no more than $295 per employee per year. This amount is pro-rated for part-time employees. Liability for the Fair Share Contribution is based on data from October 1, 2006 to September 30, 2007. More Info |
| Individuals – Commonwealth Choice is a health insurance program for Massachusetts residents and small employers. Individuals will be able to choose from a variety of private health insurance options and small employers will either contribute to and make available health insurance plans to their employees or allow for pre-tax premium deductions for health insurance through the Connector. The Connector will assist eligible individuals and employers choose and enroll in a health plan that works for them. Once enrolled, individuals will become a member of the health plan they select. Enrollment in Commonwealth Choice will begin on May 1, 2007 for effective coverage beginning July 1, 2007. More Info |
| Section 125– All Massachusetts employers with more than 10 employees (full or part-time) employed in Massachusetts must adopt and maintain a Section 125 plan by July 1, 2007. Employers with more than 10 employees who fail to offer a Section 125 payroll deduction option to all their employees may be assessed a Free Rider Surcharge if their employees or dependents significantly utilize the state’s Uncompensated Care Pool. Employers with 10 or fewer employees are not required to establish Section 125 plans, but they may if they choose. More Info |