Over the past decade, the state has witnessed a significantly higher enrollment in public-funded programs like Mass Health and the Connector. This shift away from traditional employer-sponsored coverage is largely due to the escalating costs of medical goods and services, increase of regulatory requirements, and compliance with the Affordable Care Act (ACA).

 

 

The state’s response to this funding deficit consists of enhancements to its 2014 Employer  Medical Assistance Contribution

(EMAC) program and establishing a new cost-share for employees who choose a public program. A temporary increase in

2018 and 2019 allowed state agencies and lawmakers the time needed to determine and implement a long-term solution. During this time, employers saw an offset to the scheduled unemployment insurance increases.

 

2018-2019 EMAC and Employer Experience Rate  Schedule

 

• Effective January 1, 2018

 

• Applies   to employers with more  than five employees in MA regardless of whether the employer offers health coverage to its employees

• Raises the maximum  Employer  Medical Assistance Contribution (EMAC) from $51 to $77 per employee per year

 

• Assesses fine of up to $750 for each  non-disabled employee who enrolls in MassHealth (excluding the premium assistance program) or the MA ConnectorCare program

•  Sunsets December 31, 2019

 

Calculation  of Fee and Assessment

 

Employer  Medical Assistance Contribution (EMAC)

Employer  Medical Assessment Contribution (EMAC) Supplement

• Calculation per employee:

• Calculation per employee:

 

• First $15,000 of wages  x 5% up to maximum  of $750

 

• Paid for each  non-disabled employee who:

 

• Obtains health insurance coverage from MassHealth (excluding the premium assistance program), or qualifies for subsidized coverage through the ConnectorCare program

• First $15,000 of wages  x statutory percent

 

• 2017 = .34%  (maximum of $51/EE)

 

• 2018-2019 = .51%  (maximum of $77/EE)

 

• 2020 = .34%  (maximum of $51/EE)

• New employers subject to EMAC

 

• Years 1-3 = 0.0%

 

• Years 4, 5 and 6 = .12%, .24%, and .34%

respectively

 

Premium Assistance Program: helps employees remain on or join their employer-sponsored health plan through direct premium assistance payments. Employees enrolled in MassHealth’s premium assistance program will not be subject to the EMAC supplement payment.

 

 

For budgeting purposes, both the increased EMAC rate and the supplement will be in effect for wages  beginning January

1, 2018, through the end of calendar year 2019. Employers will see  the change on their first-quarter statements in April

2018.

 

 

For more  information, visit https://www.mass.gov/service-details/updates-in-employer-health-care-contributions-and- experience-rate-schedule