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How much would single payer healthcare system cost in New York?

How much would it cost to make single payer healthcare a reality in New York?

A new report by the Empire Center for Public Policy says the New York Health Act, which has been discussed in state legislative chambers for years- would be the largest undertaking of its kind in state history. It would also have unpredictable and potentially harmful impacts for the state’s overall economy.

The report analyzes the tax consequences of New York Health Act, which would switch all state residents into a single state-operated and taxpayer-financed health plan.

Although the legislation lacks specifics on how much the proposed plan would cost or where the money would come from, it’s clear that that it would push New York’s already heavy tax burden to unprecedented heights.

Finger Lakes Partners (Billboard)

Drawing on available cost estimates, the report finds that New York’s combined state-and-local tax collections, which are already the highest of any state, would almost double to more than $17,000 per capita, which is three times higher than the national average.

The top marginal income tax rate would jump to an estimated 36 percent, increasing the incentives for tax flight among higher-income income individuals and higher-wage businesses.

The paper also warns that health care funding would become more vulnerable to economic booms and busts, and that rising medical costs would create pressure for further tax hikes.

“The New York Health Act requires a tax hike massive enough to disrupt the state’s entire economy, yet the bill’s authors have provided none of the details necessary to fully analyze the impact,” said report author Bill Hammond, senior fellow for health policy at the Empire Center. “It should be unthinkable that lawmakers would enact single-payer without clearly stating what it would cost and where the money would come from.”

Read the full report here.