New York health insurance taxes will increase rates
The New York legislature recently passed four new taxes and surcharges on health benefits that will increase rates on health insurance and the cost of medical services in NY state. The new taxes include:
1) A new 1.75 percent tax on premiums for all fully insured HMO members in New York State went into effect as of January 1, 2009.
2) Increase in tax on health insurers to fund the operations of the New York State Insurance Department. This tax was increased retroactive to January 2008.
3) Health plans will pay an surcharge assessment for every New York resident covered by commercial insurance as of January 1, 2009.
4) The state increased an existing surcharge on all medical services received at hospitals or ambulatory health care centers from 8.95 percent to 9.63 percent effective April 1, 2009.
Some New York hospitals and insurance companies have already announced planned price increases; the rest are likely to follow in the coming months. MedSave.com will post these rate announcments as they become available. Obviously these additional charges will financially hurt New York residents who are already paying some of the highest health insurance rates in the country.