Massachusetts insurance law watered down

The US state of Massachusetts, which passed a universal health insurance coverage law in 2006 (Marketletter April 24, 2006), has watered down one of the most radical provisions by the former Governor, Republican presidential candidate Mitt Romney. Under a proposal supported unanimously by the Massachusetts Commonwealth Health Insurance Connector, which administers the scheme, almost one in five uninsured people in the state will not face the threat of fines or tax penalties for failing to obtain health insurance coverage. Instead, a ceiling of 9% would be placed on the maximum that residents on incomes below $40,000 per year would be expected to pay. The reform is expected to cost about $13.0 million and will be taken from the funds previously allocated to supporting charitable hospital care.