Important Information Regarding Massachusetts Health Care Reform

 

Effective January 1, 2009, the Massachusetts Health Care Reform law requires all adult residents to have health coverage that meets the minimum creditable coverage (MCC) standards set by the Commonwealth Health Insurance Connector. Massachusetts residents enrolled in a health plan that does not meet the MCC standards may be subject to a tax penalty. As a result of this requirement, any employees who reside in Massachusetts need to be aware of the creditable or non-creditable status of their CBIA Health Connections medical plan.

The Massachusetts Health Connector has reviewed all CBIA Health Connections plans to determine if they meet the Massachusetts minimum creditable coverage (MCC) standard. All plans (except the POS $30/$45 $2,500 20% plan) are deemed creditable and/or meet the requirements of a creditable plan for 2010 and 2011.*

Any Massachusetts resident enrolled in the CBIA Health Connections program will receive an annual Form 1099-HC from their carrier that reflects their enrollment in a creditable health benefit plan.

Note: Any employer or agent who has already submitted their own application for approval of any CBIA Health Connections plan should contact the Health Connector immediately to cancel review of their individual application. Their plans are approved under CBIA's direct application and don't require further review.

*If you have employees who reside in Massachusetts and are considering enrollment in an HSA-compatible plan, additional steps are required of the employer for those plans to remain creditable. Visit the Massachusetts Health Connector website for details. Once there, select the document titled Administrative Bulletin 01-08: Guidance Regarding Minimum Creditable Coverage (MCC) Certification and see page 6. Visit CBIA's HSA page to learn more about HSAs.

Please contact your CBIA Account Manager if you have any questions. If employees have questions about their tax liability, they should contact their accountant or tax advisor. If you would like additional information regarding MCC Standards including the tax penalty, please refer to www.MAhealthconnector.org.