Do Massachusetts Residents Have to Carry Health Insurance?

Massachusetts residents don't have to buy health insurance but face tax penalties if they don't. State law requires health insurance coverage for residents aged 18 and older who can afford it. Residents must provide proof of coverage when they file their state income tax returns. If they don't have coverage and don't qualify for an exemption because of income, hardship or religious beliefs, the state won't force them to buy a policy, but it will impose a tax penalty of up to half the cost of a health plan.

History

• Massachusetts passed health-care reform in 2006. The law requiring health insurance for residents aged 18 and older took effect as of July 1, 2007. The reform plan had bipartisan support, was proposed and signed by a Republican governor, Mitt Romney, and was passed by a legislature with a Democratic majority.

Features

• When Massachusetts residents file their state income tax returns, they must file proof of health insurance coverage during the tax year. The state sets minimum standards for insurance plans. Its Health Connector program offers private, unsubsidized health plans that meet the standards. It also subsidizes plans for residents who meet income guidelines. The Connector offers lower-cost plans to young adults, traditionally a group with higher rates of uninsured members.

Significance

• Health insurance reform increased the number of Massachusetts residents covered by health insurance. When Romney proposed the measure in 2005, USA Today reported that 7 percent of Massachusetts residents had no health insurance. As of November 2010, PBS News Hour reported that the number of uninsured residents had dropped to 2 percent. The federal health-care reform program enacted in 2010 is similar to the Massachusetts law.

Plans

• Massachusetts offers health coverage at no cost to legal residents who earn up to 150 percent of the federal poverty level. It offers insurance plans with reduced premiums for those who earn more than 150 percent up to 300 percent of the federal poverty level. It also provides coverage for children in families that earn up to 300 percent of the federal poverty level. As of 2010, 300 percent of the federal poverty level was $32,508 for an individual and $66,168 for a family of four.

Penalties

• Adults who can't afford a plan may apply to the Health Connector for an exemption. The law also provides for exemptions for religious reasons. The tax penalty for an adult who doesn't maintain coverage varies, depending on income, age, family size and health plan costs. As of 2010, it's more than $1,000 for someone aged 27 or older with an income that tops $32,508. The tax penalty is 50 percent of the cost of insurance that the individual qualifies to purchase through the Health Connector. Individuals can appeal penalties based on hardship.