E-Alerts
Are You Ready for the September 30, 2007 Deadline For Employee HIRD Forms?
The deadline for completing Employee Health Insurance Responsibility Disclosure (“HIRD”) Forms is fast-approaching. In addition, the Commonwealth Connector has eliminated the requirement that covered employers must file copies of their Section 125 Plans with the Connector.
Employee HIRD Forms Must Be Completed By September 30, 2007
Each employee of a Massachusetts employer with 11 or more full-time equivalent employees must complete an Employee HIRD Form if: (1) the employee declines to enroll in his/her employer-sponsored insurance and/or (2) the employee declines to participate in the employer’s Section 125 Plan. (The calculation for determining the number of full-time equivalent employees is identical to the calculation under the Fair Share Contribution requirement, i.e. if the sum of payroll hours for all employees who have worked at least one month from October 1 through September 30, capped at 2000 hours per employee, divided by 2000, is greater than or equal to 11, then the employer is subject to the HIRD requirement (a “reporting employer”)).
Reporting employers must collect the completed and signed HIRD forms by the earlier of 30 days after the close of the applicable open enrollment period for the employer’s health insurance plan and/or its Section 125 Plan, or September 30, 2007. After September 30, 2007, reporting employers must collect Employee HIRD forms within 30 days after any of the following: (1) the date a new hire waives employer- sponsored health plan participation and/or Section 125 plan participation; (2) the date an employee terminates health plan participation; or (3) the date an employee waives or terminates health plan participation in conjunction with an annual open enrollment period.
A reporting employer must provide a copy of the signed Employee HIRD form to the employee and retain a copy of the HIRD form for three years. If an employee fails to comply with the employer’s request to return the signed form, the employer must document its efforts to obtain the form. (The new Employee HIRD Form, and the relevant instructions, including versions in English, Portuguese and Spanish, are available at http://www.mass.gov.)
Connector Eliminates Section 125 Plan Filing Requirement
The Connector recently announced that covered employers are not required to file copies of their Section 125 Plans with the Connector, unless specifically requested to do so by the Connector. The Connector had previously instructed all covered employers to file their Section 125 Plans with the Connector by October 1, 2007. As a result, each covered employer should retain a copy of its Section 125 Plan at the worksite, unless otherwise directed by the Connector.
For details regarding an Employer’s Section 125 Plan obligations, please see our e-alerts entitled Reminder: July 1, 2007 Compliance Deadline for Massachusetts Health Care Reform Law (at www.shpclaw.com) and Connector Clarifies Section 125 Cafeteria Plan Requirements and Other Updates from the Connector (at www.shpclaw.com).
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Massachusetts employers with 22,000 or more payroll hours from October 1, 2006 through September 30, 2007, should also be mindful of the requirement to complete the Fair Share Contribution/Health Insurance Responsibility Disclosure (“FSC/HIRD”) form. However, this form is still under development by the Department of Unemployment Assistance. We will continue to keep you advised of all continuing developments relative to the FSC/HIRD and the Act generally.
We are available to assist your organization with implementing a Section 125 Plan, complying with the HIRD requirement, as well as addressing any questions that you may have regarding the above or the Act in general.
