Insured New Yorkers Set to Pay $4.8 Billion in Taxes
February 20, 2013
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:
- Covered Lives Assessment: $1.08 million – This is a flat-rate surcharge on those New Yorkers who are privately insured.
- 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.
- Assessment on Insurers: $331 million – The assessment on insurers is collected to provide funds for the state Department of Financial Services.
- 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.”
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