Insured New Yorkers Set to Pay $4.8 Billion in Taxes

A recent report published in The Post-Standard estimates that state health insurance taxes will reach $4.8 billion for New Yorkers with private health insurance this year. The number is expected to increase to $6.5 billion next year, as “Obamacare” takes full effect.

According to the report, the $4.8 million tab is the result of four separate taxes:

1. Covered Lives Assessment: $1.08 million – This is a flat-rate surcharge on those New Yorkers who are privately insured.
2. Surcharge on Health Services: $3.02 million – The surcharge on health services is essentially a sales tax collected from health insurance plans. Proceeds from this tax are used to reimburse hospitals for losses incurred in providing care for those who cannot or do not pay.
3. Assessment on Insurers: $331 million – The assessment on insurers is collected to provide funds for the state Department of Financial Services.
4. Premium Tax: $406 million – This tax goes to New York’s general treasury fund, and is levied on the premiums of commercial health insurance policies.

In a statement released with the study, president and CEO of the Business Council Heather Briccetti said, “New taxes and fees in the federal health care law will add a financial burden on New York families and small businesses at a time when they can least afford it.”