MTEL Business Practice Exam

Category - Business Operations

One provision of the Massachusetts Health Care Reform Act of 2006 states that businesses with more than ten employees that do not contribute to the health-care insurance of their employees:
  1. Must provide basic health-care services directly to employees.
  2. Would be assigned a lower priority when bidding on state contracts.
  3. Must pay a higher rate on state tax of corporate profits.
  4. Would be assessed an annual fee to help fund state health programs.
Explanation
Correct Response: D. The Massachusetts Health Care Reform Act of 2006 was enacted to provide health insurance to nearly all residents of Massachusetts. One provision of the bill required that employers that have more than ten full-time employees and that do not contribute to employee health- care insurance be assessed an annual fee to help fund state health care programs. While there are incentives for employers to provide health insurance to employees, employers are not required to provide basic health-care services such as blood pressure monitoring, annual flu shots, or blood tests to check for cholesterol levels (A). The bill did not include any provisions about bidding on state contracts (B). While large companies could be assessed a fee, this fee was per employee and independent of corporate profits (C).
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