New Legislation to Reallocate Insurance Company Profits to NYC Health Care

ALBANY, NY (WTEN) – Since the pandemic, New York’s healthcare systems have worked around the clock to fight Covid, but according to the Healthcare Education Project, New York’s top 10 insurers have transformed the earnings crisis. A new law could change that.

“Insurance companies are taking profits at record highs and transferring that funding to other states, there is something wrong with that. So what we’re doing is we’re rectifying that, making sure that the profits that are taken out of New York State are actually taxed at 9.63% and reinvested back into New Yorkers.” said Senator Tim Kennedy. , lead sponsor of the Reinvest in NY Healthcare Act.

The senator says that with his legislation, the funds imposed would go to New York’s most struggling hospitals that have felt the effects over the past two years.

Sam Suarez, a food service aide for Catskill Garnet Health, has had first-hand experience of these impacts. “During the pandemic, it’s kind of crazy to see that we really depend on our people, but it’s really hard to show them how much you know we appreciate that when you know we just don’t have the funding or just us I have nothing to say, you know ‘thank you,’” he said.

However, Leslie Moran, vice president of the New York Health Plan Association opposes this legislation. She says it’s unconstitutional and in violation of the commerce and due process clause. Moran says the state already taxes health insurers $6 billion a year, and this bill would unfairly double health insurers.

“We already think insurance taxes are already high, they are too high and there is enough tax in the system and if we reallocate some of those taxes to support some of the struggling hospitals, that would be a better use of the resources that are already in our state offerings,” Moran said.

This is the first year that this bill has been introduced. The sponsors of this bill hope to see it pass this session as a way to make New York’s health care system as strong as possible.

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Justin D. O'Neill