On April 12, 2006 Massachusetts Healthcare Reform was signed into law. The goal of which was to provide universal healthcare for Massachusetts residents that will ultimately lead to more efficient care, and overtime lower costs. Under the new law there are shared responsibilities between individuals, employers and the state of Massachusetts.
Under the new law all Massachusetts residents age 18 and over must have health insurance that meet or exceed the minimum credible coverage as defined by The Massachusetts Division of Insurance. More information on what is defined as minimum credible coverage can be found on the division of insurances website. Those who are not insured will face a tax penalty each year they are not covered.
Employers with 11 or more employees are required to make a “fair share contribution” towards the cost of their employees insurance as well as establish a Section 125 for the pretax payments of the premiums. To comply with the “fair share contribution” the employer must have at least 25% participation the company sponsored health insurance plan or cover a minimum of 33% of the premium costs for an individual health plan for Full time permanent employees. Additional requirements of the companies Section 125 plan is that it must be offered to both group and nongroup eligible employees. As proof of providing a section 125 plan all companies with 11 or more employees must file the Health Insurance Responsibility Disclosure Form (HIRD) on either a quarterly or annual basis depending on the company’s size.


How does Health Care Reform affect your business?

More details on the key points of Health Care Reform

Do you qualify for an Insurance Partnership subsidy?

Employee HIRD Form (English)


Transparency: Where does your premium dollar go?

The Affordable Health Plan: Rate relief for small employers

Investigation of Healthcare Costs from Attorney General