The Employer Medical Assistance Contribution Supplement applies to employers with more than five employees in Massachusetts whose non-disabled employees obtain health insurance either from MassHealth (excluding the premium assistance program) or subsidized coverage through the Massachusetts ConnectorCare program. The contribution is 5% of annual wages for each non-disabled employee, up to the annual wage cap of $15,000, for a maximum of $750 per affected employee per year. The contributions collected will help offset the Commonwealth’s cost of providing health insurance to your employees. This supplemental contribution only applies to those employees on state-subsidized coverage.
EMAC applies regardless of whether the employer offers health coverage to its employees.
• The current EMAC contribution rate is 0.34% up to the annual wage cap of $15,000, with a potential maximum cost of $51 per employee per year.
• For the wages paid in the years 2018 and 2019, the EMAC contribution will increase to 0.51% up to the annual wage cap of $15,000, which increases the potential maximum cost per employee to $77 per employee per year.
For budgeting purposes, both the increased EMAC rate and the supplement will be in effect for wages beginning January 1, 2018, through the end of calendar year 2019. Employers will see the change on their first quarter statements in April 2018.