2018 MassHealth Assessment Update

by | Oct 27, 2017 | Benemax, Employee Benefits, Farrell Backlund, FBinsure, Insurance, MassHealth, Rich Volkmann

Massachusetts continues to struggle to find a way to pay for MassHealth.  On August 1, Governor Charlie Baker signed into law H.3822.  This law is expected to raise 200 million.  Massachusetts are combined into a single program called MassHealth. MassHealth covers about 1.9 million low income, minor and disabled Massachusetts residents, and it costs about $15.6 billion annually.

The following blog was posted with permission from Benemax.

On August 1, 2017, Governor Baker signed into law H.3822, increasing the existing Employer Medical Assistance Contribution (EMAC) and imposing a new assessment on employers with employees enrolled in MassHealth, the Commonwealth’s Medicaid program. The increased EMAC and new MassHealth assessment are effective for 2018 and 2019 and are intended to sunset after 2019.

Both assessments apply to employers with more than 5 employees in Massachusetts. Under the new MassHealth assessment, employers must pay 5% of the annual wages of each non-disabled employee who obtains health insurance coverage from MassHealth (excluding the premium assistance program) or subsidized coverage through the Massachusetts Health Insurance Connector. The assessment is capped at $750 per employee per year.

To mitigate the impact of this assessment, MassHealth will work with employers to ensure that certain employees enroll in their employer’s health benefit plan rather than Medicaid. Some of those employees will be eligible for premium assistance from MassHealth.

Employers who have employees applying for or currently enrolled in MassHealth will be asked to provide information regarding the employer’s health benefit offerings, including employee eligibility, benefits, premiums and cost sharing. Failure to comply will result in MassHealth benefits being terminated for the member. The form can be located at: Additional Information about Your Access to Employer Sponsored Health Insurance Coverage

If you have additional questions you may reach out to me at rvolkmann@fbinsure.com or call my office at 508-824-8666 x8739


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