In 2017, Massachusetts created the Health Insurance Responsibility Disclosure (HIRD) form that employers with six or more employees must submit annually starting November 30.
The Department of Revenue guidance provides that any employer who has or had six or more employees in any month during the preceding twelve months will be required to complete the HIRD form annually. The form is designed to collect information relating to an employer’s health insurance offerings and help DOR identify MassHealth enrollees with access to qualifying employer-sponsored insurance who may be eligible for the MassHealth Premium Assistance Program.
This newsletter has previously discussed the Employer Medical Assistance Contribution (EMAC) fees being charged to employers if their employees enroll in the MassHealth program. Recently, the Department of Unemployment Assistance (DUA) finalized regulations allowing a hardship exemption from the fines for employers who are either: (1) suffering a financial hardship such that payment of the assessment is likely to result in closure of the business or a significant loss of employment; (2) subject to multiple assessments in a year; or (3) facing a significant employee turnover rate.
Employers must file their HIRD forms by November 30, 2018 and each year on November 30th. In order to comply with the reporting requirement, employers must submit the HIRD form through the MassTaxConnect (MTC) web portal. If an employer uses a payroll company to file tax information on the MTC, the HIRD form may be filed by either the employer or the payroll company. However, employers are responsible to ensure that the HIRD form is filed.
We have also heard that union employers are being assessed the EMAC fines as a result of employees not being covered by union healthcare plans until they have achieved the required hourly threshold. After some digging, we have found that a form may be filed by employers if they are incorrectly assessed these penalties despite offering union health benefits.
Below is a form for employers to download and submit upon receiving their quarterly EMAC fines. We encourage our employers to file it along with a letter from the union benefit funds stating that contributions are being made for the employee.EMAC Employee Information Form Q3 2018