97,000 Mass. taxpayers fined for failing to buy health insurance

[Kat Kanning]

http://news.yahoo.com/s/ap/20080603/ap_on_re_us/massachusetts_health_care

By STEVE LeBLANC, Associated Press Writer
36 minutes ago

BOSTON - Nearly 100,000 Massachusetts taxpayers have been fined for failing to obtain health insurance, even as a major survey concludes the effort to create near-universal coverage in the state is meeting key goals. ADVERTISEMENT



Five percent of taxpayers failed to obtain health coverage last year, and more than half of those — about 97,000 — were forced to forfeit their personal exemption — worth $219 — after it was determined they could have afforded health care.

Two percent of taxpayers — about 62,000 — were found not to earn enough for health care, avoiding fines. Under the landmark law, taxpayers must show they are insured or face penalties. The numbers were based on a review of 86 percent of expected tax filers for 2007.

The state's first-in-the-nation universal health insurance law required everyone in the state to be insured by July 2007, except for those who secured a waiver proving they couldn't afford insurance.

Gov. Deval Patrick said the fact that 95 percent of filers were insured shows the 2006 law is making progress.

"We continue to put one foot in front of the other," Patrick said Monday.

A total of $9.7 million in fines was deposited into a trust fund to help cover the cost of the law. Monthly penalties for those who can afford health care but refuse will jump and could total as much as $912 for individuals by December.

On Tuesday, researchers released the first major survey of the health care law.

The uninsurance rate for Massachusetts adults dropped by more than half and residents were paying less in out-of-pocket health expenses, according to the report in the journal Health Affairs, which also found that low-income adults were more likely to have regular checkups and dental visits since the law took effect.

Researchers from the Urban Institute, a Washington think tank, interviewed 3,000 Massachusetts residents in the fall of 2006, just before the law took effect, and conducted a second round of interviews a year later.

Among the key findings in the report was the drop in the uninsurance rate among working-age adults from 13 percent to 7 percent. The biggest drop was among poorer residents.

Even among higher-earning residents, there was a smaller but significant decline in the uninsured.

"It's a very positive first year," said economist Sharon Long, the report's author.

Nearly 350,000 residents have been added to the ranks of the insured in Massachusetts under the law, which created a subsidized health care program for those earning less than three times the federal poverty level. It also created the Health Care Connector to help higher wage earners sign up for lower-cost, non-subsidized insurance plans.

The survey also found that people are paying less for health care-related expenses.

The share of adults reporting out-of-pocket expenses of more than $500 dropped by 4 percent, while the number of low-income adults reporting out-of-pocket expenses of more than $3,000 fell 8 percent.

Low-income adults were more likely to have a place to go when they were sick and were more likely to visit a doctor for preventive care.

Despite the increase in the ranks of the insured, the study found little effect on the use of emergency rooms for non-emergency care. And the fear that employers would begin dropping health coverage as the new law took effect hasn't happened.

Long said the study also included good news for policy makers: 71 percent of working-age adults expressed support for the law.

That will come in handy as lawmakers struggle to find ways to cover the soaring costs of the law.

"The continued challenge of health reform requires the continued support of the population and we find support for health care reform among adults in Massachusetts remains high," Long said.

In 2006, a legislative committee estimated the law would cost about $725 million in the fiscal year starting in July. In his budget, Patrick set aside $869 million, but those overseeing the law have already acknowledged costs will rise even higher.

Lawmakers are hoping to close the gap in part with a new dollar-per-pack cigarette tax.

"Our success has created a very big challenge for us," Senate President Therese Murray said.

The report was paid for by Blue Cross and Blue Shield of Massachusetts, the Commonwealth Fund and the Robert Wood Johnson Foundation.

[Porcupine_in_MA]

Another great example of why it was wonderful that we got out of that damn state. I love how the author of the article stated that there was less out-of-pocket expenses reported. No shit Sherlock. This has worked so well in the UK, Canada and France afterall. 

[David]

The report itself was paid for by blue cross/shield, an insurer that presumably stands to profit. 
Oh, and the out of pocket expenses will go down, briefly as the politicians scramble to save face, but yeah, that doesn't happen for long.  The 'cost savings' for the insured will disappear shortly after you hear politicians say that people should pay 'their fair share'.   

[Free libertarian]

 Kind of ironic that they want to meet the revenue "shortfall" by raising the cigarette tax in a state that has mandatory health insurance.  What's a "good citizen" to do? Start smoking to help the state out?   

[AntonLee]

too bad for them, I quit smoking 10 weeks ago tonight!!! 

somewhere, there is a child starving, and it's my fault.

the stress of this is killing me.  Better go buy some cigarettes.

[Kat Kanning]

too bad for them, I quit smoking 10 weeks ago tonight!!! 

somewhere, there is a child starving, and it's my fault.

the stress of this is killing me.  Better go buy some cigarettes.

[doobie]

Just last week NPR said it was resounding success!  98% of MA residents were insured and only a handful got fined.  Oh also, I guess they didn't declare how much money the program cost and how much it is in the hole....

I wonder how much the blue cross, etc lobbied to MA? 

Massachusetts: Socialism at it's finest.

[Porcupine_in_MA]

Massachusetts: Socialism at it's finest.

I need to make this into a bumper sticker.

[Lloyd Danforth]

I'm thinking some of these victims might want to do the time instead of the fine.  Then they could opt for serving their sentence in mid-winter and avoid buying heating oil.

[AntonLee]

Massachusetts: Socialism at it's finest.

I need to make this into a bumper sticker.

if you did Porc you'd definitely get some people to buy it.  Unfortunately, some people in MA hold high that esteemed rank of socialist.

sad but true.

[Russell Kanning]

home of the free lunch project

[Russell Kanning]

Gov. Deval Patrick said the fact that 95 percent of filers were insured shows the 2006 law is making progress.

"We continue to put one foot in front of the other," Patrick said Monday.

the key is to just put one jackboot in front of the other

[kola]

what happens if these commoners don't pay?

same nazi protocol? warrant, arrest and jailtime?

I'd bett otta that state in a heartbeat..and hopefully thats what happens. If that type of nazism becomes suceessful there other states will follow.

shit, who knows, i just may have to move to NH.

First, I'd have to armwrestle with Ian and Ryan.

I'll even let them team up, 2 against 1. 

then we could bury the hatchet and move on.

maybe.

KOla   

[J’raxis 270145]

[J’raxis 270145]

what happens if these commoners don't pay?

same nazi protocol? warrant, arrest and jailtime?

They're starting by not allowing taxpayers to take the standard deduction(s). In a few years they'll add tax penalties for not having insurance.