On Tuesday, Governor Patrick announced his second business-related legislative proposal of the 2013-2014 session (see press release). The proposal is part of the process of adapting Massachusetts’ health care system to the coming Affordable Care Act (ACA).
In addition to freezing Unemployment Insurance (UI) rates for businesses, HD 162, “An Act to Support Employers in the Commonwealth” makes several changes that impact workers’ access to health coverage:
- Repealing the Employer Fair Share Contribution (FSC) program as of June 30, 2013.
Chapter 58 was built on the foundation of shared responsibility. The law relies on contributions from all stakeholders, including individuals, government, insurers, providers and employers. Currently, the FSC program requires employers with 11 or more full-time equivalent employees to provide coverage to their workers or pay an assessment of up to $295 per worker per year. In July, the minimum number of employees to be exempt from the assessment is slated to increase to 20 workers and employees who have coverage through other sources would not be counted in the calculation. The Affordable Care Act (ACA) employer responsibility requirements – which apply to firms with 50 or more full time employees – take effect January 1, 2014.
- Eliminating the Medical Security Program (MSP) as of January 1, 2014.
Established in 1988, MSP covers workers collecting unemployment insurance either through direct coverage or COBRA premium assistance. The program has undergone several changes over the years and has been an important lifeline during the recent recession. The state seeks to streamline coverage options through implementation of the ACA. Most workers eligible for MSP will be able to access coverage through MassHealth or the Connector as of January 1st.
- Creates the employer responsibility contribution trust fund.
The Governor’s proposal maintains the current MSP assessment, at a slightly lower rate, and under a new name. Revenue from the employer responsibility contribution will be directed to MassHealth and the Connector to fund subsidized coverage for low-income residents. Funding from the employer responsibility trust fund is necessary to ensure we do not backtrack on the gains we have made in offering affordable, quality health care to Massachusetts residents.
We have long believed in the principle of employer responsibility. The Fair Share Contribution surely played a role in increasing the proportion of employers in Massachusetts who offer health care coverage to their workers. While offer rates declined in other states, ours went up in 2007 and stayed high though the recession. We were pleased that Massachusetts provided the blueprint for the ACA, even though the details differ substantially, including for the employer requirements.
So we understand the need to reexamine our policy, and we support the administration’s determination to continue substantial employer responsibility for health care in Massachusetts. We look forward to working with the Administration and the Legislature on the details of this bill and plan to monitor the impact of these policy changes on Massachusetts consumers.
-Suzanne Curry
I don’t see this law working very well. It seems that if you are unfortunate enough to work for a small company your needs don’t matter.
I recently left one job for another. The job I left was refusing coverage to me. I was full time and they did carry insurance for themselves and at least one other employee. Their full time book keeper is covered by Commonwealth Care. My total income was a bit over 300% of the FPL, so no subsidized coverage was available to me. The least expensive “Bronze” plan was greater than $300.00. By the Connector’s affordability chart, I could afford $175.00 per month, so I was not penalized. I feel that I fell through a loophole, and am almost offended everytime I hear that Massachusetts has “universal healthcare”.
My new full time position has not yet started, and I am currently at virtually no income.
I cannot get anyone from Ma Health Connector to call me back to discuss my concerns and answer my questions. I’ve sent two emails and left two phone messages requesting a call back. I am also waiting to hear back from my state representative.
PJ: How DARE your employer hire you and put money (read a paycheck) in your pocket, and not provide insurance! Good thing we’re getting Obumma to implement stricter gun-control, so that next time a prospective employer holds a gun to your head, and forces you to work for him, he’ll be stopped.
If I were out of work, and was worrying about finances, foreclosure, etc. I’d GRAB a job that didn’t provide health insurance. But that’s me.
Hi Just Passing,
Thanks for the undue sarcasm, you completely missed my point.
I chose to leave my job due to:
(1) a better offer with more money (I started the job this week)
I can now afford to purchase my own policy.
(2) the fact that I was excluded from existing company sponsored insurance (they chose
who could and couldn’t participate in their insurance plan based on God
knows what.)
According to all I’ve read on this Massachusetts law, a business that provides insurance coverage must offer equal access to all full time employees (That is, if they offer coverage, which my former employer did.) There were several buying this coverage that
were not family members of the owners of this small business. Others were on subsidized insurance.
Who said anything about worrying about finances and foreclosure? My mortgage payment is less than $350 per month. I could survive on a minimum wage position for a while if needed. In fact, I did. I work part time for a large retailer, and I picked up extra hours during my time away from my traditional line of work.
I was concerned about being at little to no income and facing a penalty for 2013 for not signing up for Commoinwealth Care or MassHealth. To repeat my original sentiment, I am offended that many are under the impression that Massachusetts has “Universal Healthcare” when I, as a hard working individual, slipped through the cracks: no affordable insurance options (no way could I pay $300 plus per month on my former salary – the Commonwealth Connecter set my affordability rate at $175. I feel I could have paid in the vicinity of $225, but nothing was available due to my age – mid 40s) and no access to employer sponsored coverage.
I hope this cleared up some things for you.