MA EMAC Supplement Will End as Planned and Will Not be Renewed
The MA PFML currently dominates the compliance space for many employers, but the EMAC Supplement is still in effect for another four months. There is good news on the horizon, however. Last month the Massachusetts Legislature passed a $43.1 billion budget for the fiscal year beginning July 1, 2019 that did not include an extension or replacement for the EMAC Supplement set to sunset or expire by its own terms. Thus, it appears that the special the two year assessment on employers will indeed sunset as originally intended.
This is great news given employers have already paid tens of millions of dollars more than anticipated under EMAC – some $519 million by the time the assessment sunsets at the end of this year — instead of the $400 million intended to be collected under the EMAC legislation.
The root causes creating past MassHealth funding deficits remain, mainly brought about by the ACA’s Medicare expansion provisions adopted by MA. Hopefully the MA legislature will address these root causes soon.