Penalties for Uninsured Massachusttes are icreasing in 2009
23 12 08 - 12:30
Penalties for uninsured to rise next year
Posted by Kay Lazar
State penalties for not having health insurance will be even more costly in 2009, compared to this year.
The Massachusetts Department of Revenue today released proposed penalty amounts that will be levied against adults who fail to get health insurance that meets minimum standards set by state regulators.
The maximum penalty for 2009 for an uninsured adult who is 27 or older and makes at least $31,212 annually will be $89 a month, for a total of $1,068 for an entire year of noncompliance. That is $156 more than the top penalty for this year.
The top penalty for young adults, aged 18-26, making more than $31,212 will be $52 per month, for a total of $624 per year.
By law, the penalty is tied to the cost of insurance, and insurance premiums are increasing because of rising health costs and a state requirement that insurance plans include prescription coverage in 2009.
Proposed penalties for adults making less than $31,212 are on a sliding scale, ranging from $204 to $624 annually, with no fee charged to adults making less than $15,612, because they are eligible for state-subsidized care.
The penalties apply only to adults, aged 18 and over, who can afford health insurance, as defined under guidelines set by the Commonwealth Health Insurance Connector Authority.
Department of Revenue Commissioner Navejeet Bal noted that 5 percent of the state's 3.9 million adult tax filers who were required to have health insurance failed to obtain coverage last year. The state's 2006 health law required nearly everyone to obtain health insurance coverage, or pay a penalty.
The proposed penalties for 2009 are still in draft form, as the department seeks public comment. Comments can be emailed to the Department's Rulings and Regulations Bureau by January, 23, 2009.