Health insurance tax reform bill backed by large coalition of unions

Proposal would charge employers who don't provide benefits

Amid a $5.4 billion city budget crunch, unions across the state are backing legislation that could shift a tax burden from away from local municipalities and onto private employers, potentially saving New York City hundreds of millions of dollars a year.  

The Health Care Reform Act, originally instituted in New York State in 1997, levies a tax on health insurance benefits provided by employers based on the number of workers with healthcare coverage, called a “covered lives assessment.” The tax, as well as a surcharge on hospital costs for these employees, were instituted with the goal of regulating healthcare payments and financing public healthcare programs.