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Sample Letter to employees eligible for employer-sponsored insurance

Dear Employee:

As you may already be aware, the state of Massachusetts passed the health care reform law in April 2006.  This law requires all Massachusetts residents, age 18 or older, to have health insurance - referred to as the individual mandate.  While the law is effective July 1, 2007, there is a special provision, for 2007 only, that defines compliance as having insurance coverage on or before December 31, 2007. You will be asked to verify your coverage as a part of your 2007 state income tax return. Penalties for noncompliance are through the state income tax system. The penalty for the first year of noncompliance is loss of the individual exemption. Penalties for subsequent years of are progressively more severe.

Exceptions to the individual mandate:

Affordability: An individual may request an exemption from the individual mandate if he/she is unable to afford health insurance. Additional information, including specific affordability criteria, can be obtained from a state agency called the Commonwealth Health Connector by calling 1- 877-623-6765 or by visiting them online at:  www.mahealthconnector.org

Religion: An individual may file a sworn affidavit with his/her income tax return stating that he/she did not have health insurance during the 12 months of the taxable year because of sincerely held religious beliefs. 

Open Enrollment:

Our next open enrollment period is __________________ through _________________ for an insurance effective date of _____________________.   If you are not currently enrolled in our Plan(s), you may want to consider enrolling during this period to satisfy the law’s individual mandate.

Health Insurance Options:

During the next open enrollment period you will have the opportunity to select from the following employer sponsored plans:
______________________________

______________________________

______________________________

Section 125 Premium Pre-Tax Plan: (Optional for employers of fewer than 11 employees)

Deductions for the health insurance plans listed above can be withheld pre-tax. This results in significant savings since you do not pay Social Security or state and federal income taxes on your health insurance premium contribution.   Your next opportunity to enroll in the Section 125 plan is ___________________.

We will continue following the progress of this law and will do everything possible to guide you through this process. 

Sincerely,

HR Department Representative