Under The Massachusetts Healthcare Reform Act, due to take effect July 1, employers with 11 or more full-time employees in Massachusetts must make a "fair and reasonable" contribution to the cost of health insurance for their employees" or face fines.

Last year's sweeping health care reform legislation made having health insurance mandatory for most Massachusetts adults. The new law phases in mechanics for employers to offer "a smorgasbord" of affordable insurance alternatives. It also requires employers with more than 11 full-time employees to offer so-called "125 plans" (referring to Internal Revenue Code Section 125) that allow employees to pay for insurance with pre-tax dollars.

Failure to comply with the new regulations can result in fines of up to $295 per full-time employee. The Massachusetts law reserves the right to raise fines if necessary.

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