Massachusetts Universal Health Care Law

Massachusetts Residents Required to Obtain Health Insurance by July 1, 2007

All Massachusetts residents should review the following notice carefully. This is of particular concern for those employees who are not covered under our health plan. If you are covered by our health plan, your requirement with regard to the law below is satisfied.

You may have heard that starting July 1, 2007 Massachusetts law will require all residents over the age of 18 to have a minimum level of health insurance coverage (known as “creditable coverage”).

If you live in Massachusetts and you are over 18, you will be required to confirm that you have creditable health insurance coverage on your state income tax return, beginning with your 2008 filing (for calendar year 2007). If you do not have creditable coverage (our plan’s coverage is creditable), you will lose your Massachusetts state personal tax exemption for the 2007 tax year. (Some exceptions may apply.)

Starting in 2008 if you fail to carry creditable coverage, you will be required to pay a penalty that is equal, in general, to half the annual cost of insurance coverage, as determined by state regulators. Massachusetts will first deduct the penalty amount from your tax return. If that is insufficient to cover the cost of the penalty, you will be forced to pay the remaining amount.

If you are ineligible to enroll in our company-sponsored health plan, you may want to consider signing up for insurance through the Connector. The Connector is an organization established to provide low-cost insurance coverage for Massachusetts residents. The Connector is currently holding an open enrollment period from May 1, 2007 through July 31, 2007, with coverage effective July 1, 2007 to coincide with the mandate requiring uninsured Massachusetts residents to obtain health insurance.

In early May 2007, the Connector launched its new Commonwealth Choice program and revised website. Commonwealth Choice is the new program that will enable individuals to shop and enroll in a health plan that works best for themselves and their families. There are also options available under another Connector program, Commonwealth Care, for those uninsured individuals who meet certain income-based eligibility requirements.

Individuals can call the Connector’s toll-free number at 1-877-MA-ENROLL (1-877-623-6765) to inquire and enroll in these new Commonwealth Choice and Commonwealth Care health plans.