Prominent Massachusetts Business Leader Says Companies Should Contribute More To Employee Health Care Than Required By Law

Main Category: Health Insurance / Medical Insurance
Also Included In: Public Health
Article Date: 07 Feb 2007 - 8:00 PST

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The president of the not-for-profit Smaller Business Association of New England, Robert Baker, said that Massachusetts' new health insurance law does not require employers to contribute a large enough percentage toward employee health insurance premiums, the Boston Globe reports. Baker said most of the association's 700 members already contribute more than the 33% required by the law. According to Baker, "Most of our people provide 50% to 80% premium contribution, and very few provide less than 50%." He said requiring businesses to pay 50% of employees' health plan premiums "should be the standard." Baker made the statements independent of the association, which has not taken an official position on the issue. Under the plan, which requires all residents to obtain health coverage by July 1 or face tax penalties, businesses with more than 11 employees would have to make a "fair and reasonable" contribution to their employees' health insurance premiums or pay an annual fee of $295 per employee. Businesses also are exempt from paying the fee if at least 25% of their workers are enrolled in a company-sponsored health plan or pay at least one-third of employees' premiums. State Sen. Mark Montigny (D) has introduced legislation that would exempt businesses from the $295 fine if they contribute 50% toward employee health plan premiums or 50% of their employees are enrolled in company health plans. Montigny's legislation also would expand the health insurance law's subsidized insurance coverage, called Commonwealth Care, to provide dental coverage, smoking-cessation programs and medically necessary ambulance rides. The bill also would reduce Commonwealth Care premiums. Rick Lord, CEO of Associated Industries of Massachusetts, said employers should not be required to contribute 50% to employees' health care because most health insurance companies already require employers to contribute more than 33% toward employees' premiums. Lord added that a state law requiring a 50% contribution would hurt businesses that hire part-time workers (Krasner, Boston Globe, 2/2).

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