BOSTON—Massachusetts residents who are not covered under a health
insurance plan in 2009 face higher financial penalties under newly
proposed rules.
The maximum penalty next year for those with incomes exceeding
300% of the federal poverty level will be $89 for each month an
individual does not have coverage, or $1,068 for a full year of
noncompliance, according to the guidelines proposed by the
Massachusetts Department of Revenue.
In 2008, the penalty for noncompliance was $76 a month, up to a
maximum of $912 a year. Penalties for those with income of up to
300% of the federal poverty level would remain the same as in 2008.
Penalties, though, do not apply for whose income is less than 150%
of the federal poverty level, as such individuals are eligible for
free health insurance coverage with premiums completely subsidized
by the state.
In addition, individuals can obtain an exemption from the penalty
if they can prove that affordable health insurance coverage is not
available. In 2007, though, only 1.9% of tax filers—roughly 76,000
adults—were uninsured and deemed by state regulators as unable to
afford health insurance and exempt from the penalty, which then was
only $219.
Imposing penalties on those without health insurance is a key
part of the 2006 Massachusetts health care reform law, which seeks
to move the state very close to universal coverage. An earlier state
report found that objective has been met, with more than 97% of
state residents now insured.