Starting January, having health insurance is compulsory in Massachusetts. Residents caught without coverage will be fined hefty penalties on a monthly basis, including losing a $219 personal tax exemption. The universal insurance coverage in the state is based on a law approved by former Gov. Mitt Romney in 2006. To ensure its implementation, all state residents will have to use a new tax form called 1099-HC, which requires tax filers to list the name of their insurer and their policy number.

Families and individuals who are experiencing financial difficulties or cite religious reasons are exempt from the law. However, they must file for an exemption, since being without insurance is automatically fined otherwise.

For a 37-year-old male in Boston, the compulsory coverage will mean a $196 annual premium for the least expensive health care plan which does not cover prescription drugs.

A massive education and information dissemination campaign was started last year to help taxpayers learn how to file the new tax form.

The implementation of the compulsory health insurance coverage will likely affect between 370,000 to 500,000 Massachusetts residents. The burden of having to get a health policy is worsened by an expected rise in insurance premiums for employer-provided policies. It will be the eighth consecutive year that double-digit premiums will be increased anew.