Persons Not Required to Have Health Insurance in Massachusetts

In 2006, Massachusetts became the first U.S. state to require residents to purchase minimum health insurance coverage. Every individual over age 18 must purchase health insurance, although those with incomes below 300 percent of the federal poverty limit qualify for government-subsidized coverage. Few residents of the state qualify for exemption from the mandate, though the law does provide some exceptions.

Minimum Creditable Coverage

• All Massachusetts adults 18 or older must purchase minimum creditable coverage, according to the Massachusetts Health Care Reform Law. All state- and federal-sponsored health programs meet qualification guidelines, but privately purchased insurance plans must include benefits for hospitalization, surgical procedures, emergency services, diagnostic services, maternity care, prescription drug coverage, mental health care, and radiation and chemotherapy treatments.

Religious Exemption

• If you hold sincere religious beliefs that prevent you from purchasing health insurance, the state of Massachusetts will not require you to purchase health coverage. According to MSNBC, approximately 9,700 people filed for the exemption in 2007. Anyone who applies for the exemption, however, and subsequently visits a doctor, hospital or other medical provider will incur fines and penalties from the state as well as lose exemption status.

Financial Hardship

• Massachusetts residents who face financial hardship during the tax year may apply for a financial hardship exemption to avoid facing penalties or fines for a lack of health insurance. To apply for an exemption, applicants must provide information about household income, liabilities and any circumstance that causes financial strain, such as a home foreclosure. According to the Associated Press, regulators granted exemptions to only 63 percent of applicants in 2010.

Application

• Individuals who wish to apply for or appeal a penalty or fine for having no health insurance coverage may file Schedule HC with their Massachusetts state income tax returns. The form acts as an application for an exemption and will determine whether or not a penalty is imposed. Any applicant who successfully receives an exemption, however, will not be allowed the personal exemption on state income taxes.

Warning

• Residents who can afford to purchase health insurance and do not have religious beliefs that prevent them from purchasing health coverage and choose not to purchase health insurance anyway will pay an annual tax penalty of up to $1,116 each year until they comply with the rule or move out of the state. However, even if a resident moves from the state, failing to purchase health insurance by 2014 will require a similar tax penalty from the federal government, as the Affordable Care Act will then require all Americans to purchase health insurance.