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January 3, 2011

Unemployment Health Fee Rises

Massachusetts employers will pay more into the fund that keeps unemployed workers insured, after a vote last week by a state board.

The Unemployment Health Insurance Rate Review Board voted to raise the rate on employers from $33.60 per employee in 2010 to $50.40 this year, according to the Statehouse News Service.

The increase will help the state address a $95 million deficit in the fund projected for June 30, 2011. Enrollment in the program rose from 8,396 in November 2008 to more than 23,700 in November 2010.

State Unemployment Insurance Director Judy Cicatiello told the news service that the increase will not cover the deficit, but the board didn't want to raise the fee any higher because of the continuing hard times for employers.

According to the news service, Gov. Deval Patrick has not yet decided whether to freeze unemployment insurance rates for employers in 2011. The rates are scheduled to rise by $259 per employee this year.

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