Bill > A08642

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 health services and the state's share of Medicaid costs. It proposes to repeal current taxes like the covered lives assessment and a sales tax surcharge on hospital services, which are described as regressive and unfairly burdening employers who provide health benefits. Starting April 1, 2026, the bill establishes new "public goods and Medicaid subsidy surcharges" on insurance corporations, business corporations, and pass-through entities, with rates that increase over time. It also introduces a surcharge on business corporations and other entities that misclassify workers as independent contractors and do not provide them with affordable health benefits, and adds a filing fee surcharge for certain business entities with significant New York source gross income. The revenues generated from these new surcharges will be deposited into the Health Care Reform Act (HCRA) resources fund. The bill also includes provisions for reporting on the impact of these changes on recipients of medical assistance and enrollees in health plans.