The penalty for people who did not have health insurance last year will be the loss of their 2007 state income tax personal exemption (worth $219). In 2008, however, the cost of being uninsured will range from $0 for people whose health insurance options are deemed unaffordable, up to $912 dollars a year for individuals over 300% percent of the federal poverty level. The penalties will accrue each month an individual does not have health insurance in 2008 and will be due as part of the tax filing process for the year.
The draft 2008 penalty guidelines released by the Massachusetts Department of Revenue (DOR) this week are open for comment until January 15. Comments on the draft penalty schedule can be emailed to the Department of Revenue's Rulings & Regulations Bureau at RulesandRegs@dor.state.ma.us. A public hearing on the guidelines is scheduled for February 2 at noon at the statehouse in Boston.
Click here for a chart of the proposed costs (PDF).
Click here for the proposed regulations.
Click here for a press release from the state explaining the new regulations.
Click here for a notice of the public hearing.
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