MASSACHUSETTS DEPARTMENT OF REVENUE REGULATION FACT SHEET

TITLE: 830 CMR 111M.2.1: Health Insurance Individual Mandate; Personal Income Tax Return Requirements

SUMMARY OF REGULATION: The goal of the Massachusetts Health Care Reform Act at chapter 58 of the Acts of 2006 (the Act), as amended, is to ensure that virtually all Massachusetts residents have affordable, comprehensive health insurance designated as "creditable coverage." Under the Act, a resident is required to indicate whether he or she has health insurance on his or her Massachusetts personal income tax return. A resident who has access to affordable coverage but who does not obtain the coverage, and to whom an exception does not apply, is subject to penalties under M.G.L. c. 111M, § 2 which will be imposed through the individual's personal income tax return. This regulation explains various aspects of the health insurance individual mandate, including the need to declare health insurance coverage on the income tax return, exceptions to the mandate, calculation of any applicable penalties, employer reporting responsibilities under M.G.L. c. 62C, § 8B, and appeal rights of taxpayers in connection with the penalty under M.G.L. c. 111M, § 2.

The Act creates a new independent authority, the Commonwealth Health Insurance Connector Authority, which is responsible, among other things, for setting standards to determine whether affordable health insurance is available to residents, based on the percentage of income available to obtain coverage and the price of coverage. The Connector is also responsible for reviewing appeals of the health care individual mandate due to hardship.

The implementation of the health care law involves multiple agencies including the Connector and the Department of Revenue. The purpose of 830 CMR 111M.2.1 is to explain the role of the Department in implementing the Act. This regulation must be read in conjunction with any pertinent regulations promulgated by the Connector or other applicable agencies.

REGULATORY HISTORY:
Emergency Regulation 12/31/07
Regulation Promulgated 3/21/08

PREPARED BY:
Massachusetts Department of Revenue
Rulings and Regulations Bureau
100 Cambridge Street, 7 th Floor
Boston, Massachusetts 02114
(617) 626-3250
FAX: (617) 626-3290