New York State imposes several taxes on employers and individuals who buy private health insurance coverage. These taxes are paid by consumers and included in their premiums. A report by the New York State Conference of Blue Cross and Blue Shield Plans reveals these taxes amounted to an estimated $5.2 billion in 2019 and increase premiums by between 6-9%.
“As New York continues to make great strides in reducing the number of uninsured in the State, reducing or eliminating hidden health insurance taxes will make coverage more affordable and is the next critical step toward universal coverage.” – Leanne Politi, Executive Director of Communications for NYSCOP
Among all of the taxes collected by New York State, taxes on private health insurance ($5.2 billion) rank third highest after personal income taxes ($52.1 billion) and sales and use taxes ($15.1 billion). Taxes on private health insurance coverage represents 6% of New York State’s entire tax revenues.
Also, among all business taxes levied by the state, the taxes imposed on the privately insured rank as the single largest tax in New York State. These taxes are likewise among the highest in the entire country.
Our report shows the four types of taxes that are driving up the cost of coverage for New Yorker’s and how it compares with other taxes and industries.
View the full report here.