Bay State Implements Health Plan Nondiscrimination Rules

Massachusetts agencies are moving ahead with efforts to implement the state’s health coverage access expansion program.

The Massachusetts Division of Insurance has issued a bulletin that explains the state’s new health coverage nondiscrimination law, which takes effect July 1.

The law prohibits employers in the state from paying less for health coverage for lower-paid full-time employees than they pay for coverage for higher-paid employees, Nonnie Burnes, the state’s insurance commissioner, writes in the bulletin.

Massachusetts regulators will define a “full-time” employee as an employee who works at least an average of 35 hours per week and is not a seasonal or temporary employee, Burnes writes.

Burnes notes that, under the new law, employers can establish a fixed dollar amount contribution to premium regardless of salary for all full-time employees living in Massachusetts.

Employers can set different contribution rates for different plans, as long as the contribution rates do not depend on salary levels, and employers can contribute at a higher rate for employees with more years of service and for employees who participate in wellness programs, Burnes writes.