New York Assembly Bill A05743

New York 2025-2026 Regular Session

• Introduced: 2/20/25
• Refer: 2/20/25
• Refer: 1/7/26

Caption

Imposes a tax on out-of-state transfers, dividends, payments, and loans by certain accident and health insurance companies and health maintenance organizations to be deposited in the New York state agency trust fund, distressed provider assistance account.

Impact

This legislation aims to increase state revenue by targeting financial transactions that involve out-of-state entities. The money collected from this tax is designated to be deposited into the New York state agency trust fund, specifically the distressed provider assistance account. This funding could help support healthcare providers that are financially distressed, providing them potential financial relief or resources during challenging times. However, the bill raises questions about how this could affect the operational financial strategies of insurance companies operating in New York.

Summary

Bill A05743 proposes a new tax on out-of-state transfers, dividends, payments, and loans made by certain accident and health insurance companies and health maintenance organizations. This bill seeks to impose a tax rate of 9.63% on various financial transactions involving domestic insurers that send money to entities in their holding company system outside New York State. The tax would apply specifically to funds related to commercial health insurance programs and must be reported to the superintendent of insurance by the domestic insurers.

Contention

Debate surrounding Bill A05743 is expected to focus on its implications for the health insurance market and the potential for higher costs to be passed down to consumers. Opponents may argue that this tax will lead to an increase in premiums for policyholders as insurance companies adjust to maintain profit margins. Additionally, there are concerns about whether this bill may discourage out-of-state health providers from conducting business in New York, thereby reducing competition and choice for consumers in the insurance market. Proponents, however, may see this as a necessary move to ensure that insurers contribute their fair share to the state's financial needs.