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MA Proponent of Health Insurance Mandate Says 'Mean' Penalties Needed to Force People to Buy Insurance
Date:1/11/2008

Massachusetts and costs of such a plan for California: http://www.consumerwatchdog.org/resources/KuehlLetterOpposeABX1_1.pdf

California's bill proposes assigning patients who don't buy insurance to a plan, then collecting payment from them later, but does not detail the enforcement mechanism.

"Governor Schwarzenegger and Speaker Nunez are trying to pretend we won't be faced with the same decision they're making in Massachusetts: enact penalties that are harsh enough to force people to buy health insurance they can't afford, or admit that a mandate does not mean universal health coverage. California politicians are denying the ugly reality of the mandate until after the votes are cast," said Jerry Flanagan with FTCR.

Massachusetts has already exempted almost 20% of uninsured adults who don't qualify for subsidies because the mandated insurance is too expensive, and health plans are unaffordable for many who are not exempted. For example, a 55-year-old in Boston would pay $4510 in premiums per year, and a $2000 deductible, or 13% of a $50,000 income.

The Massachusetts law also faces an affordability crisis, with costs projected to increase up to 14% next year, employers paying a fraction of the amount expected, and expenditures for state-subsidized care 30% higher than projected.

Read the Boston Globe story: http://www.boston.com/news/local/articles/2008/01/11/health_insurance_penaltie s_too_low_panel_official_says/ (Due to length of URL, please cut and paste into browser.)


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SOURCE Foundation for Taxpayer and Consumer Rights
Copyright©2008 PR Newswire.
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