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In 2006, the Vermont legislature began requiring employers who did not offer insurance to all their employees to pay a “Health Care Fund Contribution.” The contribution is a way for employers to share the cost of providing health care coverage for their employees. For ten years following the passage of the original legislation, employers paid the contribution to the Vermont Department of Labor. Beginning January 1, 2018, the Health Care Fund Contribution Assessment (HCFCA) will be administered by the Department of Taxes.


The purpose of the HCFCA is to ensure that all employers contribute to the cost of providing health care coverage to their employees, even those who are uninsured or insured under publicly financed plans such as Medicaid or plans on the Vermont Health Benefit Exchange. Thus, employers that provide coverage to all employees will not owe any assessment, but they still must file a return each quarter. If an employer offers to cover an employee, but the employee does not accept coverage, the employer may be required to contribute to the  Health Care Fund.

Find out how to report and pay HCFCA.