Massachusetts governor drops proposed employer insurance fee as option to curb Medicaid costs

Republican Massachusetts Gov. Charlie Baker ditched a plan to impose a $2,000 per-employee fee on businesses not offering health plans to their employees, according to a Boston Herald report.

The proposal was intended to halt growing Medicaid expenses and create $300 million in revenue. However, the state's business community largely opposed the plan.The governor met with several business groups in recent months to develop an alternative plan, the report states.

Mr. Baker's updated proposal would institute a two-year increase on the amount companies with six or more employees pay toward the state's Employer Medical Assistance Contribution, Boston Herald reports. The plan would raise the amount companies contribute from a maximum $51 per employee to $77. Companies with employees receiving coverage through the state's Medicaid program, MassHealth, would also pay a maximum of $750 for each applicable worker.

The proposed two-year measure, which is part of a package of legislative changes the governor filed with the state's budget committees Wednesday, could bring in $200 million next fiscal year. 

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