Governor Cuomo’s New Tax on Health-Insurance Policies

Gov. Andrew Cuomo’s new budget includes a nearly $69 million tax on health-insurance policies to pay for the administrative costs of continuing New York’s ObamaCare health exchange, The Post has learned.

The levy is intended to make up for federal funds no longer available to the states as of this year. Adding up to about $25 per person insured under the plan, the cost is almost certainly going to be passed on to consumers.

The tax is being called a bait-and-switch by opponents of Cuomo’s decision to start a state-run ObamaCare health exchange in New York. Had he not done so, they argue, there would have been no need for the tax.

“There was no indication that there would be a new tax to pay for this. We had plenty of debate on ObamaCare. I never heard this mentioned,” said Assemblyman Steve McLaughlin (R-Troy).

The Affordable Care Act requires that state-based health benefit exchanges be self-sustainable beginning this year after they got federal seed money to launch.

Cuomo created NY State of Health, an online marketplace to shop for health plans, in 2013.

The move was controversial, as Cuomo made it by executive order rather than with legislation.

A majority of states — almost all with Republican governors — refused to set up exchanges because they opposed ObamaCare. The federal government runs the program in those states.

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Jeffrey R. Ungvary President

Jeffrey R. Ungvary