New York Health Plan Association Response to State Budget Proposal
Statement by Eric Linzer, HPA President & CEO
“While we recognize the significant budget challenges facing the state, several of the proposals included in Governor Cuomo’s Executive Budget presentation will increase the cost of health care for New York residents and employers.
“For example, the idea of ‘recouping’ federal tax saving of health plans treats health insurers differently than other insurers in New York and creates an uneven playing field in the state. Likewise, imposing an assessment on health care conversions does nothing to address the underlying factors driving health care costs and makes New York a less attractive place to do business. Ultimately, these proposals will result in several costly new taxes on health plans that will increase the cost of health care coverage for individuals and employers. This is on top of New York’s current 1.75 percent premium tax that is applied to commercial health insurance policies, which raised an estimated $350 million in 2015 and went directly to the state treasury’s general fund.
“New York’s health care system has already been hard hit by federal actions that seek to undermine all the progress we’ve made under the Affordable Care Act. The focus needs to be on measures to support and maintain a strong and stable marketplace so that New Yorkers continue to have access to high-quality, affordable health insurance coverage, rather than imposing new taxes, fees and assessments that increase the cost of health care.
“We look forward to having an opportunity to review the full details of the budget and remain committed to working with the Governor, along with the Legislature, on measures that address the state’s fiscal challenges while safeguarding the coverage of millions of New York individuals, families and businesses and making health care more affordable.”