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Massachusetts Releases a New HIRD Form - Action Required

The new Health Insurance Responsibility Disclosure (HIRD) form will support the Premium Assistance Program. The new HIRD form is different from the old HIRD form that was passed into law in 2006, and later repealed in 2014.

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Insights  <  Massachusetts Releases a New HIRD Form - Action Required

The new Health Insurance Responsibility Disclosure (HIRD) form will support the Premium Assistance Program. The new HIRD form is different from the old HIRD form that was passed into law in 2006, and later repealed in 2014.

Background

As you may be aware, Massachusetts is struggling to fund MassHealth, which has exploded in enrollment and cost since the Affordable Care Act made coverage available based on income alone. Massachusetts is now taking action to increase MassHealth funding by temporarily increasing EMAC fees. Massachusetts also hopes to reduce costs by taking steps to enroll more MassHealth members in employer sponsored medical coverage. To that end, the state is taking steps to increase utilization of the MassHealth Premium Assistance Program.

The MassHealth Premium Assistance Program helps MassHealth members who are working and eligible for qualifying employer-sponsored health insurance to enroll in the employer-sponsored health plan. The program works by directing Premium Assistance Program participants to enroll in the employer-sponsored medical insurance and then directly reimbursing the participant for their contribution costs, and in some cases, other out-of-pocket costs such as copayments, deductibles, and coinsurance. The program reduces MassHealth costs by shifting health coverage costs onto employers.

The New HIRD Form

The new Health Insurance Responsibility Disclosure (HIRD) form will support the Premium Assistance Program. The new HIRD form is different from the old HIRD form that was passed into law in 2006, and later repealed in 2014. The old HIRD form consisted primarily of an employee form which was signed by each employee who waived the employer sponsored medical plan or Section 125 Cafeteria Plan. In contrast, the new HIRD form is a single form, prepared by the employer, submitted once annually by the employer to the Massachusetts Department of Revenue and MassHealth. The new HIRD form will provide detailed information about the employer sponsored health plan options to state agencies. The new HIRD form does not contain any personal information about employees. The new HIRD form is intended to make the Premium Assistance Program more efficient by supplying the agencies with data about the employer-sponsored health insurance plan so that the agencies can identify MassHealth members who have access to qualifying employer-sponsored insurance.

The new HIRD form must be completed by employers in Massachusetts with six or more employees. Companies with multiple Federal Employer Identification Numbers (FEINs) must submit a separate HIRD form for each FEIN.

Submission Due Date: November 30, 2018

The new HIRD report is required annually, beginning in 2018. The initial HIRD form will be available starting November 1, 2018 and must be completed and submitted to state agencies by November 30, 2018. Thereafter, HIRD reports will be due on November 30 of each subsequent year.

How to Find the HIRD Form

The HIRD report is submitted through the MassTaxConnect (MTC) web portal. The HIRD reporting is administered by the DOR through the MassTax Connect (MTC) web portal. The MTC is where employer-taxpayers register to file returns, forms, and make tax payments. To file your HIRD form, log in to your MTC withholding account and select the “File Health Insurance Responsibility Disclosure” hyperlink under the account alerts. If you do not have an MTC account, or if you forgot your password or username, you may follow the instructions provided on the MTC web page (https://mtc.dor.state.ma.us/mtc/_/#1) or contact the DOR at 617.466.3940.

A New HIRD Frequently Asked Questions (FAQ) Is Available Here.

If you experience technical difficulties while trying to access or complete the HIRD form, you may contact the HIRD Department of Revenue’s customer service center at 617.466.3940 and choose the option to speak with a HIRD representative.

If you have any additional questions you should contact your benefits broker.

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