New York weighing out-of-state insurance profit tax

New York lawmakers are considering a 9.3 percent tax on insurance companies that move their profits out of state, Spectrum News 1 reported May 9. 

The tax would be placed on dividends, payments and loans that are transferred out of the state by a for-profit payer along with for-profit and nonprofit HMOs that provide individual, small group and large group market coverage, according to the report. 

Revenue generated by the tax would be used to help struggling providers that have been stretched thin by the COVID-19 pandemic, according to the report. 

The proposed tax is supported by healthcare worker labor union 1199SEIU, but is opposed by the New York Health Plan and the Business Council of New York State, according to the report. New York Health Plan President and CEO Eric Linzer said the tax was unconstitutional and a violation of the commerce clause.

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