Employee Benefit News

April 6, 2006

Mass. passes health insurance mandate

The Massachusetts legislature on Tuesday passed a
groundbreaking measure that would require state residents to
obtain health insurance and levy a fee on employers that do not
cover their workers. Previously, no state has required people to carry
medical insurance.

The bill awaits signature from Gov. Mitt Romney (R), who has
line-item veto power. Romney's spokeswoman, Corbie Kiernan,
says, "All expectations are good for him signing it," although he's
carefully scrutinizing a provision that would charge businesses $295
per employee, if they don't offer health benefits.

"There is a new element of employer and individual responsibility,"
Kiernan remarks. "The main [goal] was to cover the uninsured in
Massachusetts and reduce the cost of health care." About 550,000
Massachusetts residents are uninsured, she estimates.

Under the legislation, low-income residents would have access to
state-subsidized insurance policies. Residents who don't have
coverage will lose their state income tax deduction and could face an
annual fee.

U.S. Sen. Edward Kennedy (D-Mass.) comments, "Massachusetts
once again leads the nation with an innovative plan that will achieve
our longstanding goal of expanding health care for all."