MASSACHUSETTS Health care plan meets criteria of Democrats, GOP

Romney announced in December that he won't seek a second term as governor.
WASHINGTON (AP) -- A Massachusetts plan that blends the Democratic goal of universal health care with the Republican philosophy of personal responsibility could be a model for politicians nationwide -- and a presidential launching pad for its chief sponsor, GOP Gov. Mitt Romney.
The proposal, approved Tuesday by Massachusetts' Democratic-led Legislature, won Romney cautious praise from Democrats, including a longtime champion of health care overhaul: Sen. Hillary Rodham Clinton of New York.
"To come up with a bipartisan plan in this polarized environment is commendable," said the former first lady, who led President Clinton's failed health care campaign.
She embraced the Massachusetts measure's most striking aspect -- requiring people to purchase health insurance -- but questioned Romney's plans to eliminate a fee on companies that do not provide health insurance for employees.
"That would unravel the plan," Clinton said.
Policy squabbles aside, Democratic and Republican strategists agreed that the Legislature had handed Romney a timely political victory. The Massachusetts governor announced in December he would not seek a second term, giving him the freedom to explore a likely bid for the GOP nomination in 2008.
Political implications
Romney, 59, now has a signature achievement on an issue that polls show is a growing concern for U.S. voters. It also adds weight to the argument that his experience as a Republican in a Democratic state would help Romney break the partisan gridlock of Washington.
Romney, whose father ran unsuccessfully for the GOP presidential nomination in 1968, said he understood the presidential implications of the health care bill but he didn't want to talk about them.
"I have nothing to add to that," he said with a laugh. "I actually ran with [health care reform] as something that I wanted to do. If there are national implications and applicability, that would be wonderful."
Romney said he suspected that the bill could be a model for changes in other states, if not nationwide.
"This is a Democratic ideal, which is getting health care for everybody, but achieved in a Republican way, which is reforming the private marketplace and insisting on personal responsibility," Romney said in a telephone interview.
How plan works
The Massachusetts plan would allow uninsured people earning less than the federal poverty level to obtain subsidized policies that have no premiums. They would make small co-payments for emergency room visits and other services.
People earning between the poverty threshold and three times that amount would be able to buy subsidized policies with premiums based on their ability to pay.
Residents will be required to provide proof of their health insurance policies on their state income tax returns. Those who do not have insurance would lose their personal state exemption, worth about $150, and eventually face stiffer penalties equal to half the cost of the cheapest policy they should have purchased.
Waivers can be given to people who can't find insurance.
Many details still need to be worked out, including exactly how much low-income residents will pay for the new policies.