The Massachusetts Health Care Reform Act of 2006 was enacted to increase health care coverage for its residents, as well as employees working in the state. The Act included reforms for the insurance market, availability of affordable health care products, state subsidized health care, and individual and employer responsibilities for health care coverage. The employer responsibility provisions were eliminated in 2013 since the ACA includes an employer responsibility provision.

Minimum Creditable Coverage

To promote individual responsibility, all Massachusetts residents must have health insurance that is considered “creditable coverage” as of July 1, 2007. Beginning January 1, 2009, minimum standards were imposed for a health plan to be considered creditable. These standards, including updates due to the Affordable Care Act, are described in the frequently asked questions for individuals.

Form 1099-HC

As proof of creditable coverage, carriers, TPAs, or employers should issue a written statement to each covered state resident by January 31 of each year on a “Form 1099-HC”. Massachusetts residents will use this information when filing their state income tax returns. There is no requirement to use a standardized form or format, but it must include the information that the employee needs to report on his or her state income tax return, such as:

  • name and tax id of the insurance company or administrator
  • name, address, and subscriber number of the covered employee
  • names and subscriber numbers of covered dependents, and
  • effective date(s) of coverage.

The MA Department of Revenue website provides a 1099-HC frequently asked questions and sample form.

For complete details regarding employer responsibilities, please visit: Health Care Information for Employers.