Employer Obligations and Massachusetts Health Care Reform

Jonathan B. Dubitzky, David A. Guadagnoli, Amy E. Sheridan
June 15, 2007

We want to remind employers that certain obligations under the Massachusetts health care reform legislation will become effective July 1, 2007. As you may know, although the legislation does not require employers to offer health benefits to all of its employees, it does require Massachusetts residents to have health coverage.

Employers with 11 or more employees must generally offer a Section 125 “cafeteria” plan that permits employees to use pre-tax dollars to pay for health benefits, whether provided by the employer or obtained by an individual directly from the Massachusetts Health Connector Authority. (Information about the Connector and this legislation can be found at www.mahealthconnector.org.) Employers are also subject to additional obligations, and are being asked by the Connector to help facilitate enrollment.

Should you have questions about this new law, need assistance in establishing a Section 125 plan (we recommend adopting a stand-alone plan, not adding this feature to an existing arrangement), or would like a copy of the slides from our recent webinar on this topic, please contact a member of the Sullivan & Worcester LLP benefits group.