Posted by
Red on Wednesday, June 04, 2008 1:13:20 PM
I recently saw a special on the new state requirement. Adults 18 and over have to have health insurance or pay a penalty. If they do not purchase a health care plan (one that meets the mandated minimums) they will loose thier personal exemption off thier tax return plus pay a penalty equal to one half the premium of the lowest price plan available. Now take a person who is a cashier at wal-mart, they make what minimum wage which is about 12,168 dollars a year provided they work forty hours a week and get a paid vacation. Wal mart may provide health insurance at a discount and deduct from an already low salary or if not that person has to find a plan that meets the following critieria.
prescription drugs(may have a deductible $250 individual /$500 Family
Regular doctor visits (co-pay no specified)
Annual deductible capped at $2,000 Individual/ 4,000 family
No cap on total benefits for a sickness or for each year
No cap on spending for a day in the hospital.
I am not an expert on cost but I think this type of coverage will not be cheap. For an indivudual like me and with a $2500 deductible and no prescription it is $327.94 a month. (went on a web site to request a quote). You may be able to obtain a waiver if you can prove you cannot afford health insurance that meets the standards.
but
They offer a state run insurance called the Commonwealth Connector. If your family income is less than 300% of the Federal poverty level you may be able to purchase a Commonwealth Care plan. Now lets see the federal poverty for an individual in 2008 is $10,400
at 300% that means income has to be less than $31,200 a year. The show interviewed a woman who was self employed and made $25,000 a year. Her premium under the plan was $100/month. She says she cannot afford it you know what with rent, untilities, fuel (if she has a car) and food. She has a good case for complaint. Since her premium is based upon income, a second job won't help as her premium will go up.
I have a suggestion.
It is cheaper for this lady to pay the fine and loose the tax exemption. At $50 a month plus the $219 exemption her fine will be only $819. verses the 1,200.00 she pays for coverage. Put the $300 in a federal pre-tax health savings account.
Thats the problem with government mandates or help, the income qualifier, It's only for the really really poor and hurts those who can barely afford it.