What is the MA Fair Share Contribution for Group Health Insurance?

The Fair Share Contribution program was established under the Commonwealth’s 2006 health care reform law and mandates that employers with 11 or more full-time equivalent employees (FTE) make a “fair and reasonable” contribution toward the health care costs of its full-time workers, or pay a $295 per FTE assessment.

What is the proposed Fair Share Contribution change?

Governor Patrick filed legislation in January to eliminate the Fair Share Contribution Policy. The federal Affordable Care Act (ACA) has a similar policy for employers with over 50 employees, effective in 2014, that could result in double-penalties if the two policies were to coexist.  The proposed change is scheduled to take effect beginning 7/1/2013, if it is passed by the Legislature before then. The proposal to eliminate the Fair Share Contribution Policy is part of a larger package of reforms targeted at the employer community.  In order to ensure employers are contributing their share to maintain quality, affordable health care for all residents, the legislation creates an “employer responsibility contribution” for employers which will, starting in 2014, help finance the cost of subsidized care for low-income residents.   The new employer responsibility contribution rate is set at .36 of 1% of Unimployment Insurance wages, which for 2014 is $50.40 per employee per year for employers with 5 or more employees.

“This common sense legislation is good for businesses and good for the Commonwealth,” said Governor Patrick. “Our people need jobs and these further measures will help employers create those jobs.”

Who is Waugh Agency, LLC?

Waugh Agency, LLC is an AHIP Certified, Multi-State licensed, independent insurance agency, located in Easthampton, Massachusetts.  We serve clients throughout all of Massachusetts (Boston, North Shore, South Shore, Worcester, Cape Cod, Western Mass),  Connecticut, and the surrounding areas.