Earlier this month, Rhode Island’s Lt. Governor, Elizabeth Roberts, proposed the Healthy Rhode Island Reform Act of 2008. Among other things, Part V of the proposed act, commonly known as the “play or pay” proposal, requires employers in Rhode Island to either provide employee health benefits or to contribute to a state fund that will cover the uninsured up to a certain level. Specifically, under the proposal, employers must pay $1,000 per employee each year if they do not offer health care coverage.

Additionally, under the reform package, individuals making 400% of the federal poverty would be required to procure health insurance.

Other states that are or have considered play or pay proposals include Massachusetts and California

Click here to read the proposed act.

Click here to read a press release from Lt. Governor Roberts.

We will continue to monitor this proposal on InsureReinsure.com and will provide updates as needed.