BOSTON—Massachusetts residents who do not have health insurance coverage face higher financial penalties in 2010 under newly proposed rules.

Under guidelines proposed Wednesday by the state Department of Revenue, the maximum penalty next year for those with incomes that exceed 300% of the federal poverty level would be $93 for each month that an individual has no health insurance coverage, or $1,116 a year.

In 2009, the maximum penalty for noncompliance was $89 a month, up to a maximum of $1,068 a year.

Penalties for those with incomes up to 300% of the federal poverty level also would increase. Depending on income, they would range from $19 to $58 a month. The range in 2009 was $17 to $52 a month.

Penalties, though, do not apply for individuals with incomes that are less than 150% of the federal poverty level, which, for example, currently is $16,248 for an individual and $33,084 for a family of four. Such people are eligible for free health insurance coverage, with premiums paid by the state.

Imposing penalties on those without health insurance is a key part of the 2006 Massachusetts health care reform law with the goal of moving the state very close to universal coverage. Earlier this year, a state report found that objective had been met with more than 97% of state residents having health insurance.

Comments on the proposed should be emailed to the Massachusetts Department of Revenue's Rulings & Regulations Bureau at RulesandRegs@dor.state.ma.us. The deadline is Dec. 18.