Universal Healthcare Now Mandated in Mass.
Earlier this year, the state of Massachusetts passed legislation requiring that all residents of the Commonwealth procure health insurance coverage.
The program commenced over the recent weekend, starting July 1st. However, penalties for failure to obtain coverage won’t kick in until next year, after residents file their state income taxes. At that time, they must provide proof that they obtained health insurance prior to December 31st of this year.
The impetus for the program was finding a way to obtain coverage for almost 400,000 Massachusetts residents who are without health insurance, about ten percent of the state’s total population.
Preliminary data suggests that the program is making strides in improving coverage rates. Over 130,000 residents without coverage at this time last year have enrolled in a health insurance plan. Importantly, most of this group is comprised of people who are eligible for subsidized or free programs.
The legislation also includes changes that have implications for small business owners. Those with 11 or more employees must offer health insurance and pay a “fair” portion of the premium or face penalties. They must also make accounting modifications to allow employees to pay for premiums with pre-tax income.
The next challenge is further encouraging participation from those residents who do not benefit from state subsidies and will have to, instead, pay for coverage entirely out of pocket. The state expects to provide 60,000 residents with exemptions, to those who cannot afford coverage and are not eligible for the subsidies.
Advocates for the State program are particularly concerned about garnering the enthusiasm of the younger generation, those in their 20s or 30s, who may not readily recognize the importance of obtaining coverage. The state undertook a massive media campaign, which is generating a significant response.
Already the eyes of the country are squarely set on Massachusetts to see how the program fares. State officials and program advocates acknowledge the imperfections of the program, but note that this represents a step forward to ensuring coverage, particularly means to access affordable health insurance. This also provides an opportunity for individuals who cannot independently procure coverage secondary to pre-existing conditions, a cause of uninsurance which gets little attention.
Lessons learned from the Masschusetts plan may help craft efforts for a plan for national coverage.
Related stories:
- Preliminary Data from NHIS Released
- Device Group Proposes Health Plan
- Kansas Passes Healthcare Legislation
- Filling In the Gaps
- Fines for Uninsured
July 3, 2007 Related topics: Legal & legislative, Finance