Bill > S08157

This bill, known as the "NYS Health Care Tax Reform Act," aims to replace existing taxes on health insurance with new surcharges to fund public goods and Medicaid subsidies, with the goal of making health insurance more affordable. It repeals certain existing taxes on health care services and instead imposes a "public goods and Medicaid subsidy surcharge" on insurance corporations, business corporations, and pass-through entities (like partnerships and limited liability companies). The bill also introduces a surcharge on misclassified workers, meaning individuals treated as independent contractors but who should be employees, particularly if they are not offered affordable health benefits. Additionally, it modifies filing fee surcharges for certain business entities. The revenue generated from these new surcharges will be directed to the Health Care Reform Act (HCRA) resources fund, which supports services like indigent care grants and subsidies for medical malpractice insurers, as well as contributing to the state's share of Medicaid costs. The bill specifies different surcharge rates that will increase over time, with some reduced rates for employers who provide affordable health benefits to their employees. It also mandates reporting requirements for the Department of Health and the NY State of Health to track the impact of these changes on health insurance coverage and state costs.

Health and Social Services

https://www.nysenate.gov/legislation/bills/2025/S8157