Romney Mandatory Insurance Plan

Former Massachusetts Governor Mitt Romney announced a plan in 2006 for the state. He was going to attempt the impossible - universal health coverage for all Massachusetts citizens. The idea is certainly not revolutionary. Many attempts have been made, and all have failed. The most recent endeavor that comes to mind was during the Clinton administration when Mrs. Hillary Clinton attempted to overhaul our complex and broken health care system. Romney balks at the comparisons to Clinton's attempts and goes out of his way to separate himself from the Democrat by stating "we don't need Hillary-care."

The legislation has passed in Massachusetts and been in effect since July 1, 2007. The state legislators believed that providing insurance to everyone would actually reduce health care costs for Massachusetts. Romney, a Harvard educated former business man, took a look at the numbers and saw that businesses were footing the bill to the tune of over $1 billion dollars annually - cash earmarked for the uninsured by subsidizing a fund to provide "free" care to those residents.

Romney wanted to require that the uninsured pay what they could afford for their own insurance, and the $1 billion would be used by the state to subsidize the rest . The plan received bi-partisan support and in the end was voted against by only 2 legislators. Critics were surprised because the plan was passed by a Republican Governor in a Democratic House.

Here are some key points in the plan:

1. Those who are 300% below the federal poverty level- FPL (approximately $38,500 for a family of 3) but are not eligible for Medicaid will have their private insurance plans subsidized at a sliding scale rate.

2. Children in families that are 300% below the FPL are given free coverage through Medicaid.

3. Individuals that make ($9,600) well below the FPL will have their premiums waived on their private insurance. Currently, childless adults, regardless of income, aren't eligible for Medicaid under the current plan.

4. Those who can afford insurance will be penalized for not purchasing coverage. During the first year, they will lose their state personal income tax exemption.

5. The plan allows the use of "health savings accounts" with less expensive high-deductible "catastrophic" coverage options. Health Savings Accounts allow individuals to invest the funds and withdraw it tax free to cover health care needs.

6. For employers, those with more than 10 employees are required to contribute to employee health care costs.

7. Employers who don't provide insurance will have to pay $295 annually for each full-time employee.

8. The plan creates a "health insurance connector" to assist businesses and individuals find affordable private insurance coverage.

Many thought he couldn't do it but the Massachusetts plan has turned out to be one of Romney's major political successes. Romney used his business acumen to resolve a problem that was previously regarded as unsolvable. Time will tell if the plan continues to be solvent and sustainable. For now, the citizens of Massachusetts are enjoying unprecedented health coverage.