Bill > S00219

This bill enacts the Health Care Tax Reform Act, which aims to reduce various taxes and assessments on health insurance in New York State. The bill gradually phases out several taxes that the legislature argues are regressive and increase the cost of health care, including the section 206 assessment on insurance companies, taxes on non-life insurance corporations, and percentage allowances for hospital services. Specifically, the bill introduces a stepped reduction of these taxes between 2025 and 2031, with the goal of ultimately eliminating them entirely. For example, for insurance companies, the tax rate on health insurance premiums will be reduced from 1.75% to 0% by 2031, and the section 206 assessment will be completely eliminated by the 2031 fiscal year. The bill is based on legislative findings that these taxes collectively cost consumers over $5 billion in 2018 and are counterproductive to making health insurance more affordable. The tax reductions will be implemented gradually over several years, allowing for a structured transition, and the bill is designed to provide financial relief to consumers and health care providers by reducing the tax burden on health insurance and related services.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S219