Massachusetts law spurs rise in health coverage

By Jason Szep

BOSTON (Reuters) - Nearly half a million people obtained health insurance in the two years since Massachusetts enacted a pioneering health-care law, officials said on Tuesday, putting the state closer to covering nearly all residents.

The law, seen as a possible national model as traditional employer-based coverage shrinks nationwide, made Massachusetts the first U.S. state with near-universal health insurance when it went into effect in April 2006.

Between June 2006 and March 31, 2008, more than 439,000 people enrolled in private or subsidized health insurance programs, the state's Executive Office of Health and Human Services said in a report.

It said the growth reflected a big expansion in private coverage, which grew by more than 191,000.

"To have insured nearly a half-million people in less than two years is nothing short of remarkable," said Gov. Deval Patrick in a statement.

There was no estimate on how many people remain uninsured.

The law makes coverage mandatory through an "individual mandate" that requires virtually everyone to have health insurance or face tax penalties. For those earning less than the federal poverty level of $9,800 a year, coverage is free.

Those earning up to three times the poverty level can get subsidized plans, according to the legislation, which was signed into law by former Massachusetts Gov. Mitt Romney, a Republican, and backed by the state's top Democrats.