How will the Shared Responsibility for Employers policy in the ACA mesh with the Fair Share Contribution policy in Massachusetts’ health reform law?

How will the Shared Responsibility for Employers policy in the ACA mesh with the Fair Share Contribution policy in Massachusetts’ health reform law?

Massachusetts health reform (passed in 2006) included a policy that assessed employers with 11 or more full-time-equivalent employees that did not make a “fair and reasonable” contribution towards the health care costs of their workers. Given that national health reform includes its own incentives for employers to offer health insurance to workers, the Patrick Administration opted to streamline and reduce requirements of this nature for Massachusetts employers.

As such, Governor Deval Patrick signed a provision in the Fiscal Year 2014 budget that eliminates the Fair Share Contribution policy. The repeal of Fair Share Contribution policy is not expected to affect employer offer rates here in Massachusetts, as employers have been key partners in the success of the Commonwealth’s landmark health reform law and have continued to offer coverage to workers at very high levels, even in the face of the national economic downturn.

The repeal of Fair Share became effective on July 1, 2013. Here are some important updates for Massachusetts employers that may have questions about what this repeal means for any remaining filing or reporting responsibilities:

  • Any employer who is sent an FSC Notice to File (NTF) for FSC Quarter 3 (April 1, 2013 – June 30, 2013) needs to complete this filing by the 8/15/13 due date
  • Employers who have been sent FSC Notice to File (NTF) letters for prior periods and have not yet filed for any/all of those periods should do so immediately. Enforcement and collection of FSC liability for all periods prior to June 30, 2013 will continue
  • No employer needs to file FSC reports with DUA for quarters beginning July 1, 2013 or after

Last Update: November 3, 2016  

May 12, 2015    Small Businesses  
Tuesday, May 12th, 2015|
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