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Employer Contribution to Health Care 2

SECTION 46.   The General Laws are hereby amended by inserting after chapter 118I the following chapter: -
CHAPTER 118J
EMPLOYER CONTRIBUTION TO HEALTH CARE

Section 1. As used in this chapter, the following words, unless the context clearly requires otherwise, shall have the following meanings:
"Commissioner", the commissioner of revenue.
"Employee", an individual employed, either on a full or part-time basis, by an employer for at least 1 month, provided that for the purpose of this section self-employed individuals shall not be considered employees.
"Employer contribution rate", an amount equal to $2,000 per full-time equivalent employee per year provided such rate shall be adjusted annually in accordance with the United States Department of Labor New England consumer price index percentage change rate.
"Minimum qualified offer", an employer must offer to employees working over 35 hours per week (1) $4,950 per year to an employer sponsored group health insurance plan or (2) an amount established by the department of revenue in consultation with the participating agencies, to a QSEHRA or other defined contribution vehicles. The amount necessary to qualify as a minimum qualified offer may be adjusted annually in accordance with the United States Department of Labor New England consumer price index percentage change rate.
"Participating agencies", includes the executive office of health and human services, the commonwealth health insurance connector authority, the department of revenue, the department of unemployment assistance, the division of insurance, and the center for health information and analysis.
"QSEHRA", a Qualified Small Employer Health Reimbursement Arrangement as set forth in section 9831 of the Internal Revenue Code of 1986, as amended by Title XVIII of the 21st Century Cures Act.
"Total full-time equivalent employees", equals the number of hours worked in a quarter by all employees who have been employed by the employer for at least one month, not to exceed 500 hours per employee, divided by 500 hours. In the event an employer does not report hours for its employees, each employee's hours shall be deemed to be 500 hours in the quarter.
"Uptake rate", equals the total number of employees who are enrolled in the employer's employer sponsored group health insurance plan, or who are enrolled in a health insurance plan funded using an employer's contribution to a QSEHRA or a defined contribution vehicle, divided by the employer's total full time equivalent employees.

Section 2. The total employer contribution of each employer that employs 11 or more full-time equivalent employees in the commonwealth shall be determined as follows:

1)          For each quarter, if an employer does not make any contribution or makes a contribution less than the minimum qualified offer then the employer shall be assessed one quarter of the employer contribution rate multiplied by the employer's total full-time equivalent employees
2)          For each quarter, if an employer makes a minimum qualified offer but has a less than 80 per cent uptake rate, the employer contribution shall be one quarter of the employer contribution rate multiplied by the product of the difference between 80 per cent and the employer's uptake rate times the total full-time equivalent employees.
3)          For each quarter, the employer contribution shall be zero if the employer makes a minimum qualified offer and has an uptake rate of greater than, or equal to, 80 per cent.

Section 3. This chapter shall be administered by the commissioner pursuant to chapter 62C .

Section 4. Unless otherwise specified by the commissioner, employers shall file quarterly returns with the commissioner declaring the amount of their liability under this chapter, or claiming exemption therefrom, and shall pay over such amounts to the commissioner. Such returns shall be filed and payments shall be made in the form, manner and at the times determined by the commissioner and the returns shall provide such information as the commissioner may require.

Section 5. Notwithstanding any provision of any general or special law to the contrary, participating agencies may disclose and share information, including personal data, as defined in section 1 of chapter 66A , and return information subject to section 21 of chapter 62C , to the extent necessary for the administration of this chapter and consistent with applicable federal law, provided that return information under this chapter shall not be public record and provided that the confidentiality rules of section 21 of chapter 62C shall otherwise apply to return information under this chapter.

Section 6. The commissioner, in consultation with the participating agencies, may promulgate regulations or other guidance necessary to implement this section.



Summary:
This section establishes a $2,000 employer contribution for those employers that do not offer minimum health insurance coverage to their employees, as defined by this section.