An Act simplifying state reporting obligations of health plan coverage

194th Legislature (2025-2026) Introduced by Barry Finegold

Allows MA employers to satisfy state health-plan reporting with federal Form 1095-B or an MCC attestation, streamlining reports while preserving MCC and protecting privacy.

House concurred

Overview

Bill number: SD 2259

Title: An Act simplifying state reporting obligations of health plan coverage

Purpose: To streamline and modernize how employers report health plan coverage to the Commonwealth, using federal Form 1095-B in certain cases, while preserving minimum creditable coverage standards.

Status: House concurred

Introduced: February 27, 2025

Primary sponsor: Barry R. Finegold

Related action: Similar matter previously filed in 2023-2024 as Senate No. 1824

What the bill would do (Key provisions)

Section 1: Allow alternative to the MA-written statement

Affected entity: Employer or other sponsor of an employment-sponsored health plan

Allowance: May satisfy the state written statement requirements by either: 1) Providing, or contracting to provide, federal Form 1095-B to each subscriber or covered individual in Massachusetts who was insured, instead of the state-form written statement. This 1095-B must be accompanied by a model notice informing the recipient that the coverage meets the minimum creditable coverage (MCC) standards defined in Chapter 111M. 2) In a separate report to the Commissioner of Revenue, including an attestation from the employer/sponsor certifying that the health plan coverage for the applicable tax year meets MCC standards.

Clarification: This change does not alter MCC requirements themselves.

Section 2: Privacy/protection in reporting

An employer/sponsor that uses the 1095-B reporting option must redact Social Security numbers and other information in the report as required to comply with privacy requirements.

Section 3: Effective date

The provisions take effect for the current tax year upon enactment.

Who is affected

Employers and other sponsors of employment-sponsored health plans operating in Massachusetts.

Subscribers and covered individuals residing in Massachusetts who receive health plan coverage.

Massachusetts Department of Revenue (Commissioner) for reporting and attestation.

Health plan administrators and service providers involved in issuing Form 1095-B or MA reporting.

Procedural and timeline notes

Committee action: Referred to the Senate Committee on Revenue on February 27, 2025.

Chamber action: House concurred on February 27, 2025.

Effective timing: Provisions apply to the current tax year immediately upon enactment.

Context: The bill references a prior, similar filing (Senate No. 1824 from the 2023-2024 session) indicating ongoing consideration of simplifying reporting obligations.

Potential impact

Administrative simplification for employers: Ability to use federal Form 1095-B in lieu of Massachusetts-form statements, potentially reducing duplicative reporting efforts.

Enhanced privacy: Redaction of sensitive data (e.g., SSNs) in MA reporting when 1095-B is used.

Maintaining MCC standards: Ensures that reporting remains aligned with minimum creditable coverage requirements under Chapter 111M, with MCC determination preserved.

Clarity for subscribers: A model notice would clearly communicate MCC status of reported coverage.

Bill