An existing “fair share” contribution regulation is part of the state’s health care reform law that in 2006 created a nearly universal health system in Massachusetts. The current regulation charges a $295-per-employee penalty to businesses with at least 11 full-time employees if they don’t fulfill one of two requirements.
To avoid paying the fee, employers must either ensure that at least 25% of their full-time workforce is enrolled in their group health insurance plans, or pay 33% of the premium costs for individual coverage for employees within 90 days of their start date.
The proposed regulation, would require employers to meet both requirements in order to avoid the assessment. If adopted, the a spokesperson for the state says assessments would provide an estimated $45 million in revenue in fiscal year 2009, substantially more than the approximate $7 million in revenue the state now receives.