Massachusetts Connector Authority Officials Expect Penalties Appeals To Triple In FY 2009

Main Category: Health Insurance / Medical Insurance
Article Date: 15 Jul 2008 - 9:00 PDT

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Massachusetts regulators on Thursday said they expect more than a 300% increase in the number of state residents who will appeal penalties in the next year for failing to obtain health coverage under the state's health insurance law, the Boston Globe reports. The Commonwealth Health Insurance Connector Authority has allocated $3.3 million, nearly 10% of its $39 million fiscal year 2009 budget, for the 8,000 appeals the board expects to process. In FY 2008, the board received an estimated 2,000 to 2,500 appeals. Connector officials attribute the expected increase to the large hike in penalties -- from $219 per person this year to a maximum of $912 next year.

The Connector board also is considering regulations that would establish a minimum standard for coverage, which also would raise the price of coverage. The board has scheduled a public hearing on its proposed regulations for Sept. 12 and plans to vote on a final package in October. If approved, the rules would take effect Jan. 1, 2009 (Lazar, Boston Globe, 7/11).

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