BOSTON — Employers would be counted on to pay $200 million more a year over the next two years to help pay for rising expenses in the state’s $16.6 billion Medicaid program under a plan the Baker administration presented to the Legislature Tuesday to balance next year’s budget.
The plan, a sweeping package of insurance reforms and temporary assessments — considered taxes by many — calls for a two-tiered assessment on companies, with the bulk of the burden falling on employers with non-disabled workers who enroll in MassHealth.
The new strategy deviates from the $2,000 assessment on certain employers that Gov. Charlie Baker proposed in his budget in January, a plan that sought to raise $300 million. Business groups and lawmakers raised concerns over the governor’s plan, but the House and Senate deferred to the administration in their budgets, essentially signaling to Baker to work with the industry to come up with a compromise.
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