Massachusetts Health Care Reform Act FAQ

Why am I getting this form?
You are getting this form to prove you have satisfied the Massachusetts mandated coverage requirement. Do not throw this form away as you will need it when you file your taxes.

Why do I need this form for my taxes?
The Massachusetts Health Care Reform bill (Chapter 58 of the Acts of 2006) intends to ensure that all residents of the state have health insurance coverage provided through a combination of private and public, subsidized and unsubsidized programs. It is the responsibility of residents of Massachusetts over the age of 18 to obtain health insurance coverage that is available to them. Coverage must be in effect by December 31, 2007.

The regulations also require that either employers, carriers or other administrators of health plans provide covered members with the newly implemented 1099-HC as supporting documentation that the member is in compliance with the regulations. Information from the 1099-HC will be used to complete the resident's Massachusetts Schedule HC for the 2007 tax year. This same information is being provided to the Massachusetts Department of Revenue.

What is the Massachusetts Health Care Reform Act?
In 2006, the Massachusetts Health Care Reform Act was passed. The Act is designed to ensure that every Massachusetts resident has adequate health coverage by requiring Massachusetts residents to obtain health coverage that satisfies minimum guidelines and by imposing various requirements on Massachusetts employers.

In part, this Act requires that all adult residents have "minimum credible coverage" (MCC) health insurance. In addition, they must provide proof of this coverage or they will be subject to financial penalties. Financial penalties will take the form of lost personal exemptions for any adult filer that cannot establish proof of coverage.

What is Minimum Creditable Coverage (MCC)?
MCC is the health insurance standard that all adults who reside in Massachusetts must meet to conform to the Health Care Reform Act's requirements.

How will I know whether I have MCC?
If you receive the 1099-HC form - a new Massachusetts information form that serves as proof of health insurance coverage for Massachusetts adult residents - this lets you know that you have MCC. Information from this form will be used by the taxpayer to complete the new Schedule 1099-HC that must be filed with their regular Massachusetts Resident tax forms.

Who do I contact to correct information on this form?
You should call the Andover Service Center at (800) 442-9300.

Where can I find additional information about this form or other aspects of the Massachusetts Health Care Reform Bill?
You'll find additional information at the Massachusetts Department of Revenue website at www.mass.gov/dor and www.mass.gov/dor/hcinfo.

Please note: The Coverage Effective and Coverage Through dates on the form represent only the dates you were covered during 2007 and not your normal plan coverage dates.

NOTE:
Medicare Extension Plan members will not receive a 1099-HC because Medicare is their primary coverage. On the Massachusetts Schedule HC, Medicare primary members should check Section Three-Government Subsidized Health Insurance and check off item C. Medicare. View a sample of Section 3 of Massachusetts Schedule HC.

If the enrollee or his/her dependent is Medicare primary, but other family members covered under the UniCare State Indemnity Plan are in the Basic, PLUS or Community Choice Plan options, then a 1099-HC will be sent to each family member.