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Massachusetts law would require all residents to get health insurance
Gov. Mitt Romney is expected to sign the bill into law shortly.
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The Massachusetts legislature passed a groundbreaking bill that would require all state residents to buy health insurance by July 1, 2007, or face legal consequences.
On April 4, the state’s House voted 152-2 and its Senate voted 37-0 in favor of the bill, the Washington Post reported.
The bill’s passage followed several months of intense negotiations between the two Democrat-controlled chambers and Republican Gov. Mitt Romney. Although it is unlikely he will reject the bill, the legislature has enough votes to override a veto, the Boston Globe reported.
However, Romney is expected to veto a line item that would require companies to pay a $295 fee for each employee they do not insure. The fee, which Romney calls unnecessary, would have funded a pool for subsidizing low-cost policies, the Washington Post reported.
If enacted, which appears certain, the legislation will make Massachusetts the only state that requires all residents to buy some form of health insurance coverage. Uninsured residents with salaries below the federal poverty level would be eligible for subsidized health insurance with no premiums and only small copayments. Those earning up to three times the federal poverty level would be able to buy policies with premiums based on their ability to pay. A new agency comprised of government, insurance policyholders and insurance companies would determine the amounts that low-income residents would pay for the subsidized policies, the Washington Post reported.
All Massachusetts residents would have to provide details about their health insurance policies on their 2008 state income tax returns. Residents who do not buy coverage would lose their personal state tax exemption and face penalties equaling up to half the cost of the least expensive policy available. Those who cannot find affordable coverage would be eligible for a waiver, the Washington Post reported.
Some media reports have touted the Massachusetts program as a possible model for a national health care program. Law makers in several other states, including Oregon, New Mexico, California and Arizona, are considering universal health coverage programs, according to USA Today.
Others point out that Massachusetts’ new plan may not be an ideal model because the state is atypical — it has a relatively small uninsured population, which will hold down the implementation costs.