MA Employer Medical Assistance Contribution (EMAC) Supplement

In August 2017, an “Act Further Regulating Employer Contributions to Health Care”(Chapter 63 of the Acts of 2017), was signed into law, which temporarily changed the existing employer medical assistance contribution, modified the unemployment rate insurance schedule and, in addition, created a temporary supplemental contribution. The law was enacted to offset the significant increase in the cost of Medicaid over the last few years (estimated at $160 million to $300 million for this year). The Administration has proposed a comprehensive package of reforms to achieve a sustainable MassHealth program that is currently under review by the legislature.

The changes enacted are effective as of January 1, 2018. Any MA employer with more than 5 employees will see a “temporary” rate increase in the required EMAC assessment and an additional required contribution for employees who may be on MassHealth.

Author: Karin Brosnahan, Managing Director, HR Solutions