Health INsurance

[davidcslocum]

What is the name of your state (only U.S. law)?
Massachusetts

Can a company that is self insured and operates in Massachusetts legally have salaried employees eligible for health insurance on the first day of hire but require a 90 day waiting period for hourly employees?

Dave

[ecmst12]

I don't believe there is any law preventing a plan from being set up that way.

[davidcslocum]

I was hoping there was since Massachusetts now requires residents to have health insurance and companies to offer it. 3 months would equal about a $230 penalty on my state taxes.

[ecmst12]

I'm not familiar with the law, but I suspect you are over-simplifying it. I'm sure CBG will be along soon with more information.

[cbg]

The law requires the employer to offer it and he is. Nothing in the law says he has to offer it, effective the first day of employment. Waiting periods are still legal in MA.

The law requiring that you have health insurance is binding on you, not on your employer. He is not liable for the fact that you do not have coverage now. Better either pick up COBRA or buy a short term policy until you're eligible.

[ecmst12]

Wait there is a law requiring all residents of MA to carry health insurance on themselves?

[momm2500]

The New Health Insurance Law. Key provisions of the law include subsidized health insurance for residents earning less than 300% of the Federal Poverty Level, and low-cost insurance for all other residents who are not eligible for insurance through their employers. As of July 1, 2007 all residents will be required to maintain health insurance.

Commonwealth Connector. Despite the vague name, this is the state agency managing mandatory health insurance. The two basic programs are Commonwealth Care, for lower income residents, and Commonwealth Choice, which will offer private sector alternatives for those who don't qualify for low-income insurance. 1-877-MA-ENROLL (1-877-623-6765)

[cbg]

It's a relatively new law - went into effect on 7-1-07 officially but most residents had until 12-1-07 to be in compliance. With the same law, MA became the second state to require employers to provide health insurance to their employees; some exceptions apply for very small employers.

[ecmst12]

What is the penalty for non compliance?

[cbg]

For individuals, loss of state tax credits. I forget what the penalty is for employers who should offer it and don't - will have to look that up.