A proposal supported by Democratic lawmakers and a prominent health care workers union may lead to a tax hike for health insurance companies operating in New York with out-of-state entities.
The measure, set to impose a 9.63% tax on profits transferred out of state by these companies, is being pushed to aid health care networks struggling in the wake of COVID-19.
Supporters argue that recouping these profits will allow for reinvestment into local workers and health care institutions, particularly distressed hospitals and health care centers.
State Sen. Tim Kennedy emphasized the need to direct funds back into the hands of front-line workers and healthcare infrastructure.
The proposed measure, however, has faced criticism from business organizations who worry about potential harm to the state’s economy and patients. Critics also question the constitutionality of the tax, dubbing it as a form of double taxation for the companies.
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