Massachusetts Issues Updated Employer Healthcare Penalty Appeal Guidance

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The Massachusetts Department of Unemployment Assistance (the “Department”) has issued updated FAQ guidance regarding appeals of Employer Medical Assistance Contribution (“EMAC”) Supplement liability for employers wishing to challenge an employee’s eligibility for subsidized healthcare coverage.  For more information on the EMAC Supplement, please see our prior HRBenefitsAuthority, dated April 23, 2018.

New Form.  Employers who wish to appeal their EMAC Supplement liability by challenging an employee’s eligibility for subsidized healthcare coverage must submit a completed EMAC Employee Information Form for each challenged employee. For the 2018 first quarter assessment, the completed forms (along with any supporting documentation) must be sent via secured email to EMACemployeedata@State.MA.US no later than May 15, 2018.

Impact on Payments.  Completing the EMAC Employee Information Form does not alter the due date for EMAC Supplement payments.  If the Department concludes that an employee was not eligible for subsidized healthcare coverage, the employer will receive a credit in the following quarter with respect to each ineligible employee.

Offer of ACA Compliant Coverage.  Under the new guidance and form, it appears that the Department is unwilling to entertain the argument that an employee was ineligible for subsidized healthcare coverage because the employee was offered, but declined employer-sponsored ACA compliant healthcare coverage.  However, at least to preserve future appeals, it may be helpful for employers offering ACA compliant coverage to manually add this to the form where applicable.

Contact Information.  For more information, please contact Don Mazursky (404.888.8840), Kelly Meyers (404.888.8838), Angela Roberts (404.888.8822) or Alex Smith (404.888.8839).