Home Home Page

Letter to employees not 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. 

Eligibility for Insurance:

You are currently not eligible for employer-sponsored insurance.   As a result you are eligible for Commonwealth Choice and, possibly, for ubsidized coverage through Commonwealth Care.

Commonwealth Choice: The Commonwealth Connector has given their Seal of Approval to certain plans available by Blue Cross Blue Shield of Massachusetts, Fallon Community Health Plan, Harvard Pilgrim Health Care, Health New England, Neighborhood Health Plan and Tufts Health Plan. Enrollment for these new plans is now open. For more information and to enroll, call   1- 877-623-6765 or visit the Connector Web site at www.mahealthconnector.org.

Commonwealth Care:Commonwealth Care is a program through which individuals below a certain income are eligible for insurance coverage with premiums subsidized by the state.  The Connector Web site, www.mahealthconnector.org, provides additional information to help you determine if this is the right program for you.  You may also call 1-877-MAENROLL for information or to enroll.

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

You may be eligible to pay your insurance premiums on a pre-tax basis through payroll deduction. If this is the case, you will receive more detailed information shortly. Pre-tax payment results in significant savings since you do not pay Social Security or state and federal income taxes on your premium amount.

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

Sincerely,

HR Department Representative