A prominent business group is calling on Massachusetts political leaders to end fees on its members, designed to shore up the state’s Medicaid program, a year early.

Associated Industries of Massachusetts this morning called upon the legislature and Gov. Charlie Baker to end to the two-year assessment imposed on employers last year to close a financial gap at the state’s MassHealth insurance program for low-income residents. The assessment fell most heavily on companies who direct employees to use MassHealth to find health insurance instead of sponsoring a health insurance plan for them.

The industry group stated that businesses are on track to contribute $119 million more than the $400 million originally envisaged in the 2017 legislation that created the fees. AIM argued those numbers, plus rising state tax receipts, mean the assessment is no longer needed.

“The conditions that led to the imposition of the surcharge no longer exist. Employers who have paid hundreds of millions of dollars in assessments believe it is fair to look at ending the surcharge in year two,” John Regan, executive vice president of government affairs at AIM, said in a statement.

An existing fee called the employer medical assistance contribution increased from $51 to $77 per employee under the assessment. Employers also were required to pay up to $750 for each worker who receives public health benefits. Employers may request a waiver from the fees if they prove a hardship. Of 246 such waiver requests, administration officials said they have allowed 99.

Industry Group Calls for End of Health Care Fee

by Banker & Tradesman time to read: 1 min
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