Bay State To Hike Penalties For Uninsured

Massachusetts residents who don’t have acceptable health coverage this year could face much higher penalties than in 2007, state officials warn.

Officials at the Massachusetts Department of Revenue have proposed setting the penalty scale at half of the lowest cost health insurance plan available for residents in a particular income range through the state Health Connector program.

Someone who earns more than $30,636, or 3 times the federal poverty level, could face penalties of $76 for each month they remain uninsured, or $912 per year.

Lower-income people would face lesser fines or no penalties at all and would be entitled to subsidized coverage, officials say.

The new penalties would accrue each month that an individual lacks health insurance in 2008 and will be due as part of the tax-filing process for the year, officials say.