Government Affairs Alert

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Over the past year, we have heard from some members about the state’s Employer Medical Assistance Contribution, or EMAC. Last year, the Baker Administration attempted to simultaneously address MassHealth’s growing deficit and encourage employers to offer private alternatives by levying a quarterly tax against the payroll of any employee who utilized the state’s health insurance program. Applying to any business with six or more employees, including part time and seasonal labor, this new assessment could run as high as $750 per relevant worker.

Understandably, reaction to this policy has been strong. Having drawn sharp criticism for the shockingly high bills the measure gave rise to, the Department of Unemployment Assistance recently announced it would award waivers based upon financial hardship to a narrow band of employers. To qualify, a business must illustrate that:

  • It has acted in good faith in all its relations with the Department, and certifies that it is current on state taxes and assessments, including, where applicable, the nursing facility user fee assessment; and
  • provide evidence of one or more of the following:
    1. The business is unable to pay the EMAC Supplement because of financial hardship and failure to obtain a hardship waiver is likely to result in termination of the employer’s business or in substantial loss of employment;
    2. The business has paid an Employer Shared Responsibility Payment and been assessed an EMAC Supplement in the same calendar year; or
    3. The business has paid an Employer Shared Responsibility Payment and been assessed an EMAC Supplement in the same calendar year; or
    4. The business experienced a turnover rate of at least 300% over the four quarters immediately preceding the application. (https://www.mass.gov/service-details/learn-about-the-emac-supplement-hardship-waiver)

Waiver applications are due Friday, October 12th, and application forms can be found here. While still applied too narrowly, providing far too short a window for submission, and offering no opportunity for appeal if rejected, this step does represent a positive development. We encourage any employer who believes they qualify to apply and to do so quickly. Meanwhile, the Chamber and its partners across the Commonwealth will continue to advocate on behalf of regional businesses in an effort to repeal this punitive measure.