Bill > A05743

This bill imposes a new tax on certain accident and health insurance companies (referred to as "domestic insurers") for out-of-state transfers, dividends, payments, and loans within their holding company systems. Starting April 1, 2025, these companies will be required to pay a tax of 9.63% on funds from their commercial health insurance programs that are transferred to an entity located in another state. The tax applies only to the initial transfer and does not apply to subsequent distributions. Commercial programs are defined as health insurance programs outside of specific government-sponsored or exchange-based plans. Companies must report these transfers and payments to the state superintendent, and all taxes collected will be deposited into the New York state agency trust fund's distressed provider assistance account. The bill also amends existing insurance law to incorporate this new tax provision and ensures that health maintenance organizations and other relevant insurance entities are subject to this new taxation requirement. The act will take effect immediately upon becoming law, with the substantive provisions becoming active on April 1, 2025.

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https://www.nysenate.gov/legislation/bills/2025/A5743