Bill > A08642

This bill enacts the "NYS health care tax reform act", which aims to fundamentally restructure healthcare-related taxes in New York State. The legislation introduces a public goods surcharge for various types of corporations, including insurance corporations, business corporations, and pass-through entities, effective April 1, 2026. The surcharge rates are set at 10.2% for most entities, but reduced to 5.4% for employers who provide health benefits equivalent to at least a bronze-level plan under the Affordable Care Act. The bill eliminates existing health care-related taxes, such as the covered lives assessment and hospital-based health services surcharge, which the legislative findings describe as regressive and unfairly implemented. These changes are intended to maintain revenue for public goods services like indigent care grants and medical malpractice insurance subsidies while making the tax structure more equitable. The bill also modifies filing fees for limited liability companies and partnerships, introducing a new surcharge tier based on New York source gross income. The revenues from these new surcharges will be deposited into the health care reform act resources fund, with the goal of supporting various public health initiatives while potentially reducing the direct tax burden on healthcare services.

Health and Social Services

https://www.nysenate.gov/legislation/bills/2025/A8642