Federal penalties for uninsured to offset state penalties: Massachusetts
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The Massachusetts Department of Revenue says it plans to issue regulations stipulating that federal penalties state residents pay because they are uninsured will offset state penalties they owe.
The regulations “would create a credit against any Massachusetts health care penalty owed for the amount of any federal health care shared responsibility payment, so as to prevent aggregated federal and state penalties,” the Department of Revenue said in a notice last week.
For example, an individual who owed an $800 penalty under the Patient Protection and Affordable Care Act and a $1,000 penalty under the Massachusetts law would have to pay only $200 to Massachusetts.
That same Massachusetts notice also laid down proposed 2014 state penalties for uninsured residents.
• The maximum penalty this year for people age 31 and older with incomes that exceed 300% of the federal poverty level, which is $34,476 for an individual and $70,656 for a family of four, would be $92 for each month that an individual is not covered by health insurance, or $1,104 a year.
• For people age 18 through age 30 in that same income group, the penalty would be $58 for each month, up to $696 a year.
• For adults 18 and older with incomes between 250% and 300% of the federal poverty level, which is between $58,884 and $70,656 for a family of four, the penalty would be $59 a month, up to $708 a year.
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• For those with incomes between 200% and 250% of the federal poverty level, it would be $39 a month and up to $468 a year.
• For those with incomes between 150% and 200% of the federal poverty level, it would be $20 a month and up to $240 a year
Penalties do not apply for individuals whose incomes are less than 150% of the federal poverty level, which is $17,244 for an individual and $35,328 for a family of four. Those people are eligible for free health insurance coverage, with premiums paid by the state.
