Nearly all Massachusetts employers are meeting the requirements of the state’s 2006 health care reform law and offering health insurance coverage, a new report released by the Massachusetts Division of Health Care Finance and Policy concluded: 95.4 percent of employers subject to the fair-share requirement provided coverage, down slightly from 95.9 percent in 2009. Under the measure signed by Mitt Romney, employers with 11 or more full-time equivalent employees (FTEs) must either make a “fair and reasonable” contribution toward the health care costs of its workers or pay a Fair Share Contribution (FSC) of up to $295 annually per FTE. (Note: Romney vetoed the employer responsibility provision, but it was overridden by the legislature.)
The trend assuages GOP predictions that employers would drop coverage if given a choice between paying a modest penalty and offering insurance, potentially undermining their claims that the Affordable Care Act’s employer responsibility provisions will encourages businesses to dump their employees into the exchanges. Since reform, the Massachusetts employer offer rate has increased to 77 percent, up from 72 in 2007. The national offer rate now stands at 69 percent.
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