Current through Register 1531, September 27, 2024
(1)
General Requirements. Each Reporting Employer must
provide an Employee HIRD Form for completion and signature by each Employee
that declines to enroll in Employer-sponsored insurance or declines to use the
Employer's Section 125 Cafeteria Plan to pay for health insurance. Each time an
Employee of a Reporting Employer declines to enroll in Employer sponsored
insurance or declines to use the Reporting Employer's Section 125 Plan to pay
for health insurance, the Employee is required to complete, sign and return an
Employee HIRD Form to the Reporting Employer.
(a)
Reporting
Employer. An employer is required to collect signed Employee HIRD
Forms if it has either 5,500 payroll hours in any quarter or 22,000 payroll
hours in a year.
(b)
Required Information. The Employee HIRD Form must
contain the following information:
1. Employee
Name;
2. Employer Name;
3. Whether the Employee was informed about
the Employer's Section 125 Cafeteria Plan;
4. Whether the Employee declined to use the
Employer's Section 125 Cafeteria Plan to pay for health insurance;
5. Whether the Employee was offered Employer
subsidized health insurance;
6.
Whether the Employee declined to enroll in Employer subsidized health
insurance;
7. If the Employee
declined Employer subsidized health insurance, the dollar amount of employee's
portion of the monthly premium cost of the least expensive individual health
plan offered by the Employer to the Employee;
8. Whether the Employee has alternative
insurance coverage;
9. The
Employee's signature and the date on which the Employee signs the HIRD
form.
(c)
Required Acknowledgments.
1. The Employee must acknowledge that he or
she has declined to enroll in Employer sponsored insurance and/or has declined
to use the Employer's Section Cafeteria 125 Plan to pay for health
insurance.
2. The Employee must
acknowledge that if he or she declines an Employer offer of subsidized health
insurance, he or she may be liable for his or her health care costs.
3. The Employee must acknowledge that he or
she is aware of the individual mandate under M.G.L. c. 111M and the penalties
for failure to comply with the individual mandate.
4. The Employee must acknowledge that he or
she is required to maintain a copy of the signed HIRD Form and that the HIRD
Form contains information that must be reported in the Employee's Massachusetts
tax return.
5. The Employee must
indicate that by his or her signature, he or she acknowledges the truthfulness
of his or her answers.
(2)
HIRD Form.
(a)
Form Availability;
Versions. The Connector will make available the Employee HIRD Form
to Reporting Employers by posting the Form on the Connector's website,
www.MahealthConnector.org . The Connector may revise
the Employee HIRD Form from time to time. When an Employee is required to sign
the Employee HIRD Form, the Reporting Employer must provide the Employee with
the current version of the Employee HIRD form as posted on the website on the
date of signature. A Reporting Employer is not required to have Employees sign
an updated version of the Connector's Employee HIRD Form if the Employee signed
the version in effect on the date of signature.
(b)
Alternative
Form. A Reporting Employer may collect the required information
and acknowledgements from its Employees in any form or manner, including any
electronic or other alternative media form that it deems necessary or
appropriate; provided that the alternative form contains all of the required
data elements listed in 956 CMR 10.04(1) and the same wording, order, and
sequence and numbering of questions as they appear on the Employee HIRD Form
version posted on the Connector's website.
(c)
Electronic
Signatures. An Employee may sign an Employee HIRD Form using an
electronic signature; provided such signature complies with applicable federal
and state law.
(3) The
Reporting Employer must retain the signed Employee HIRD Form for a period of
three years.
(a) The Reporting Employer must
make available to the Connector and the Department of Revenue copies of signed
Employee HIRD Forms or Alternative Forms for inspection and audit. The
Reporting Employer must submit a copy of an Employee HIRD Form to the Connector
or the Department of Revenue upon request.
(b) If the Employee does not comply with the
Reporting Employer's request to complete and return a signed Employee HIRD
Form, the Reporting Employer must document diligent efforts to obtain such Form
and maintain the documentation for a period of three years.
(c)
Additional
Documentation. The Reporting Employer must create and retain
documentation for those Employees who are not required to sign an Employee HIRD
Form for a period of three years, including Employees enrolled in the Reporting
Employer's sponsored health plan and Employees not eligible for the Reporting
Employer's Section 125
Cafeteria Plan in accordance with 956 CMR 4.06(3)(b)4.
(4)
Due
Date.
(a)
Annual Open
Enrollment. The Reporting Employer must obtain a signed Employee
HIRD Form from each Employee required to sign a Form by the earlier of 30 days
after the close of the applicable open enrollment period for the Reporting
Employer's health insurance, and/or its Section 125 Cafeteria Plan, or
September 30th of the reporting year. If an
Employer's open enrollment period for 2007 - 2008 ended prior to July 1, 2007,
and an Employee has signed an Employer form acknowledging that he or she was
offered and declined Employer sponsored insurance, such Employee is not
required to sign an Employee HIRD Form until the next applicable due date, in
accordance with 956 CMR 10.04(4), occurring on or after July 1, 2007. If and to
the extent the Employer form is effective for any period on or after July 1,
2007, the Employer must retain the signed Employer form until July 1,
2009.
(b)
Change in
Status Terminations. If an Employee who enrolled in an Employer
sponsored health insurance plan subsequently terminates participation in the
plan between applicable enrollment periods in accordance with the reporting
Employer's Section 125 cafeteria Plan (and remains employed by the Reporting
Employer), the Employee must sign an Employee HIRD Form within 30 days of the
date participation terminated.
(c)
New Hire Enrollment. The Reporting Employer must
obtain the signed Employee HIRD Form from each new Employee that either
declines Employer sponsored health insurance or declines to use the Employer's
Section 125 Cafeteria Plan to pay for health insurance within 30 days of the
close of the applicable new hire enrollment period.
(5)
Signed Copy to
Employee. The Reporting Employer must automatically provide a copy
of each signed Employee HIRD Form to the Employee. The Reporting Employer must,
upon request, provide a copy of the Employee's signed Employee HIRD Form to the
Employee for use in filing the Employee's Massachusetts income tax
return.