Taxes on health insurance in New York is driving up the cost of premiums, a report set to be released Wednesday by the New York State Conference of Blue Cross and Blue Shield Plans found.
The report from the New York State Conference of Blue Cross and Blue Shield Plans comes as New York is facing a resurgence of COVID-19 cases as the year draws to a close and amid growing concerns of rising hospitalization rates due to the pandemic.
Taxes in 2020 on health insurance plans reached an estimated $5.57 billion, increasing premiums by 6% to 9%, the report found. These taxes are placed on both employer-based coverage as well as individual plans.
Private health insurance taxes rank third highest in New York behind the personal income tax and sales tax revenue.
“As we continue the battle against COVID-19, access to affordable health coverage is more critical than ever," said Leanne Politi, the executive director of communications for the New York Sate Conference of Blue Cross and Blue Shield Plans. "New Yorkers should not be burdened with increasing premiums as a result of higher state taxes. As New York State leaders consider options to close the growing deficit due to the pandemic, they should avoid measures that will impact the cost of care.”
The full report can be found here.