Topics: Health insurance, Health care, Health economics Pages: 3 (1114 words) Published: January 30, 2013
Massachusetts Health Care Insurance Reform Law aka Romneycare was enacted in 2006 in an effort to achieve two primary goals. One was to have a universal insurance coverage throughout the state while the other one was to keep the expenditure on health care from rising exorbitantly. To meet the objectives, the state adopted three different approaches to cover the maximum population – the individual mandate, the employer requirements and the commonwealth care health insurance program. In the past six years, the effects of this law had been scrutinized, defended and even admired but the facts present romneycare as just another experiment. Romneycare had come into effect as a mandate on the residents of Massachusetts. Just because they live in the state, people have to buy insurance to avoid financial penalties for not doing so. Since it is based on residency, this law is one of its own kind. The fine for failing to avail an insurance plan in 2007 was charged through the individual’s income tax return in which people lost their personal tax exemption. Beyond 2007, the same Individual Mandate program has charged each uninsured person with an amount equal to 50% of the minimum monthly premium for creditable coverage for each month of non-compliance. The employer requirements of romneycare necessitate employers with more than 10 full-time employees to contribute a fair share toward their employees’ health coverage in its group health plan. Moreover, if the same type of employer has failed to adopt a group health plan for its employees, the entity has to incur a surcharge in a situation where the state pays for care for any single of its employee. In addition to these actions, the same employer has to submit a Health Insurance Responsibility Disclosure (HIRD) form to help state collect information and keep a check on the regulation. The law through its newly established program, Commonwealth Care Health Insurance Program partially subsidizes the insurance for...
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