In a client advisory issued yesterday, we explain how the rules governing insurance marketplaces under the Affordable Care Act affect compliance with the Massachusetts free-rider surcharge.  Specifically, beginning in 2014, employees who are ineligible for employer-sponsored group health plan coverage will no longer be able to access voluntary plan coverage under the Connector’s  Commonwealth Choice portal.  Employers that provided access to voluntary plan coverage were not subject to the Commonwealth’s “free-rider” surcharge.  As a consequence, employers must take steps to ensure that alternative coverage is available or face the prospect of a penalty.  

Our advisory lists as one of the options available to employers coverage under soon-to-be-announced private exchange.  That exchange—called “Mosaic—was announced today.  For a copy the announcement, please click here.