Most People In Massachusetts Must Be Insured Or Face Tax Penalties

July 2, 2007 – 2:41 pm | posted in Health Insurance, Medicare, Public Health

As of today, most Massachusetts citizens must have health coverage if they do not want to be burdened with every-growing tax penalties. This move is as near as it has ever got in the United States towards universal health cover.

The new legislation makes provisions for free health care for those earning less than the federal poverty level. Those who earn up to three times the poverty level are eligible for state subsidized plans. If an individual earns more than $30,630, or a family of four earns more that $61,950, there is a choice - carry on with your existing coverage or choose from some lower-priced private health plans.

Many other states around the US will be watching developments in Massachusetts carefully. If things go well, this could become a model that spreads rapidly throughout the nation. For its success it is crucial that individuals seek out the health care options available to them. The idea of Individual Mandate will either catch on like never before, or languish and lose steam.

So far, 130,000 people who had no health care coverage at all have enrolled into subsidized or free plans. There are many tens of thousands of other uninsured people who will need to enroll into subsidized plans, for which they will have to pay a premium. Even though these plans are well subsidized, they could mean having to pay out hundreds of dollars a year. If these people enroll in large numbers the whole project could become a thumping success.

It is estimated that there are about 400,000 people in Massachusetts with no health coverage.

Businesses have been encouraged to take part. In fact, if you now have a business in Massachusetts which employs at least 11 workers you will face annual fees of $295 per worker if you do not offer health insurance.

A couple of decades ago, the then Gov. Michael S. Dukakis attempted to provide universal health care legislation in Massachusetts. This never got off the ground because employers would have had to provide coverage to workers or pay a tax - an unpopular proposal at the time.

Arnold Schwarzenegger, Governor of California, is pushing for a similar plan in his state. Even President Bush recently said that the Massachusetts experiments could play a key role in shaping America’s ‘costly and confusing’ health-care system. President Bush, in the same speech, said the American system leaves too many people uninsured.

Even though today, July 1, is the beginning of the Individual Mandate, the crunch will come in December 31, the deadline to obtain health insurance.

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