12/21/2007
Massachusetts requires proof of creditable coverage
Starting July 1, 2007, all Massachusetts residents age 18 and older must obtain and maintain health coverage that meets
minimum creditable coverage standards and report this coverage on their income tax returns. Noncompliance means losing
Massachusetts' personal state tax exception and, beginning in 2009, paying a fine.
While the law does not place any requirements on Asuris (because we are not licensed or otherwise authorized to issue
coverage in Massachusetts), it does impact employers—including ASO and fully insured groups—who have employees (or
dependents) residing in Massachusetts.
Beginning in 2008, impacted employers must provide annual written statements to covered employees or family members living in
Massachusetts. The statements must be delivered on or before Jan. 31 of each year and state whether the plan's benefits
meet the creditable criteria for the previous year. The reports must also be filed with the Massachusetts Department of
Revenue. Noncompliance with either of these requirements can result in fines.
In an effort to inform employers about the compliance requirements, we will mail letters by Dec. 31, 2007, to those employers
with employees who have Asuris coverage and reside in Massachusetts.
For more information, visit Massachusetts' health insurance Web site or see the commonwealth's handbook for
employers.
If your group clients have detailed questions, please refer them to their legal counsel for definitive guidance on the law
and how it impacts them.
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