Health Insurance Penalties Should Be Higher According To A Panel Official
According to a member of an influential state panel, penalties for Massachusetts residents who do not opt for health insurance were too low. According to Jonathan Gruber, director Commonwealth Health Insurance Connector Authority, they need to “do what’s right”.
Last week a schedule of penaties was proposed ranging from $17.50 per month to $76 per month depending on income. The basis for this fine is a state law that makes either insurance or penalty mandatory. After a public comment period, the penalties would be finalized.
According to Leslie Kirwan, the top penalty of $912 per year is a leap from the $219 per year that people were paying upto last year when they were uninsured. According to healthcare advocates and some other concerned people, imposing the law in totality would mean 27 different penalties based on age, income and hometown. This could be unwieldy. Some also said that a 50 percent penalty was harsh on older people who pay twice as much insurance as younger ones.
Gruber remarked that for young people the penalty was less than 40 percent of insurance and for older people it was only 20 percent of insurance. Also people who cannot afford the insurance will not have to pay penalty. If people are faced with extenuating circumstances they can request a penalty waiver using the tax form.
