Insuring Massachusetts

It looks like Massachusetts has found a way to achieve near universal coverage. A pattern for the nation? The Democrats' plan for 2008? Mitt Romney (Republican governor and presidential wannabe) has yet to sign the bill, but it passed almost unanimously.

The bill requires all Massachusetts residents to obtain health coverage by July 1, 2007. Those who can afford insurance will be penalized on state income taxes if they do not purchase it, but all insurance plans will be fully tax deductible for individuals and small businesses (50 employees or less). Businesses with more than 10 employees will be assessed tax fines of up to $295 per employee per year. Reports on the bill suggest that 95% of uninsured, 99% of all, will be insured within three years. The state will also subsidize plans for those under 26 and those making 300% of the poverty line or less. Interesting idea.

It seems to spread the cost of the uninsured to both government and businessesm, but is an "individual mandate." I have not seen cost estimates, but the NYTimes reports that it is expected to cost only $1.2 billion more in total, almost all of it federal money for some reason, and is not expected to cost any more money after three years. Presumably the cost of not having to pay for uninsured is being used to, well, pay for insurance.