Thursday, June 21, 2007

 

Massachusetts Health Insurance Mandate

The Massachusetts Health Care Reform Plan, signed into law April 12, 2006 by Governor Mitt Romney, requires that all uninsured Massachusetts residents purchase a health insurance plan by July 1, 2007. Failure to do so will trigger a penalty of 50% of the average health insurance plan cost, imposed via state income tax filings.

Reforms in the state insurance market are expected to reduce the cost of individual plans by 24%. Additionally, the 19 -26 year old market will find special lower cost plans made available. Low income individuals will receive subsidies to help with the insurance costs. Individuals with incomes less than $9,800 per year will have no out of pocket expense to purchase the insurance. A single nanny with no dependents earning less than $30,636 may qualify for state assistance in paying insurance premiums. Employers with 11 or more employees are required to make a contribution to the employee's insurance costs of just under $300 per year.

The plan establishes a "Connector" service which acts as a one-stop shopping experience where individual can choose from a variety of plans and compare costs and coverages in one place.

Visit The Commonwealth Connector for more information.

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