The Massachusetts Department of Revenue said Monday the tax penalties for not having health insurance in 2008 will more than triple for many people in the state.

Under the law now, individuals who have not obtained insurance by the end of the year lose the state's $219 individual tax exemption. But in 2008, individuals up to the age of 26 with incomes too high to qualify for subsidized health insurance will face a penalty of $672 for an entire year without coverage. People with similar incomes age 27 and over will face a potential annual penalty of $912. The new penalties are based on one-half the lowest cost plans available through The Commonwealth Health Insurance Connector Authority, the agency created to enact the new health insurance law.

Subsidized insurance is available to individuals earning up to $30,636 per year. For a family of four, the threshold is $61,956.

Penalties will apply only to adults who can afford health insurance, based on separate standards established by the state Health Connector on an annual basis and subject to hardship appeals, according to a release from the DOR.

"These proposed guidelines are a direct reflection of the responsibility given to us by the landmark Massachusetts health care reform law as the Commonwealth tries to enroll nearly all adults in health insurance plans," said Revenue Commissioner Henry Dormitzer, in a statement. "With nearly 300,000 newly insured, the state is well on its way to achieving its goal."

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