Businesses want relief from health care fees
Business leaders say the assessments are crushing some companies, and they want help from lawmakers who are already looking to rein in costs at MassHealth, the state's Medicaid program.
Companies cannot force workers to accept health coverage, a coalition of business leaders noted in a recent letter to lawmakers. Still, those businesses are "punished" for the thrifty decisions of workers who elect instead to sign up for insurance through MassHealth.
"It's having a very negative effect on business owners, many of whom have been caught off guard by this," said
Carlozzi said the group has heard of assessments ranging from a few hundred dollars to upward of
The fees are twofold. In January, Gov.
In addition, employers are fined up to
The fees, expected to drum up
Carlozzi said the worst of the impact could come this summer as tourist-related businesses are forced to pay the
Looking for relief
Sen.
"A lot of businesses are struggling to make those payments," she said. "So, if there's a way to restructure it to reduce the hit, I'm open to that."
The
One would prevent employers from being charged both the MassHealth assessment and the federal employer shared responsibility payment in the same tax year. The other would allow "non-profits, high-turnover firms and small businesses" to seek a hardship waiver.
The business coalition wants lawmakers go further by capping quarterly assessments at
He said business leaders are concerned about how the quarterly payments will affect nonprofits that provide valuable services and programs for communities.
"Some of the bigger nonprofits are looking at six-figure penalties under this assessment," he said. "For them, it has become a crushing burden."
"We pay very generously for our employees' premiums, but we have a number of low-wage employees who find it more economical to go through the Connector, so we get assessed for that," he said. "Our hands are tied. We can't force them to take it. We can't even ask why they don't take it."
Under the Affordable Care Act, the state cannot block private sector employees from choosing Medicaid, even if they are also offered employer-sponsored health coverage.
The health care fee has been a major source of friction between the Baker administration and the state's business community.
Last year, Baker pitched a
Lawmakers rejected Baker's MassHealth reforms but approved a new scaled-down health care fee and coupled it with reduced unemployment insurance rates to offset the impact on businesses.
The first round of quarterly assessments went out in April, with a new round expected in July.
MassHealth costs
Baker is trying to bring down costs at MassHealth, which covers more than 1.9 million people and consumes 40 percent of the state's
MassHealth spending increased 4.4 percent to nearly
Republican lawmakers, who've supported many of Baker's MassHealth reforms, say inaction by
Rep.
He said the state's health care costs have "become totally unsustainable."
Even those who oppose the employer assessments don't fault workers for switching over to government-backed health insurance, which generally offers lower premiums.
The cost of employer-sponsored insurance in
Business leaders say besides relief for employers, the state needs to tackle MassHealth costs.
"Small businesses are justifiably concerned that omitting any sort of MassHealth reform effort will no doubt lead to
___
(c)2018 The Eagle-Tribune (North Andover, Mass.)
Visit The Eagle-Tribune (North Andover, Mass.) at www.eagletribune.com
Distributed by Tribune Content Agency, LLC.
Gov. Cuomo moves to bolster protections for transgender New Yorkers ahead of possible Obamacare repeal
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News