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In a recent Cato briefing paper, Director of Health and Welfare Studies Michael Tanner

voices skepticism about Massachusetts Governor Mitt Romney's Health Reform Plan.

While its mandate for universal coverage is bold, Michael believes

that the plan will not have its intended effect.

What does the Massachusetts Health Insurance Reform entail.

There are four major parts to the Massachusetts Health Insurance Reform.

The first and most widely discussed is an individual mandate.

That is a requirement that everyone who lives in the state must have health insurance.

If you don't receive that health insurance from your employer or from the government, then

you have to go out and buy it on your own.

Failing to do so results in a penalty.

Initially, the loss of your personal deduction on your state income tax,

and later, a fine equal to one half the cost of a traditional insurance policy.

Second, there are subsidies to enable people to help purchase health insurance.

These subsidies range up to people earning as much

as $60,000 a year for a family of four. Third is a small but real mandate on businesses who don't offer insurance to their employees.

They have to pay a penalty of about $295 a year and there are some additional penalties as well.

And finally and perhaps most importantly, the health care plan sets up what's called the Massachusetts Health Insurance Connector.

This is a form of managed competition similar to the purchasing pools under the failed 1993 Clinton health insurance plan.

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