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Apr
17

Massachusetts’ employer “mandate”

Many years ago I was stopped for speeding in Montana – specifically doing 90 in a 55 mph zone. The fine was $5 and was paid on the spot. The officer wished me a nice day, and off I went at 90+. It looks like Massachusetts may have learned from the Big Sky state, at least when it comes to setting penalties for politically unpopular laws.
Yes, the new Massachusetts universal coverage law requires most employers provide employees with health coverage, but the penalty of $295 per employee for non-compliance is somewhat of a joke. With health insurance costs per employee in the $5000 plus range, the penalty amounts to a 6% fine for noncompliance.
Not exactly a strong message…
Meanwhile, the state’s law may well be challenged by corporations under ERISA…a nod to Paul Secunda for his interpretation of the situation and to John Rodat of SignalHealth for the heads up.


Joe Paduda is the principal of Health Strategy Associates

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A national consulting firm specializing in managed care for workers’ compensation, group health and auto, and health care cost containment. We serve insurers, employers and health care providers.

 

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