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ImageAlbany- New York State Senator Mike Nozzolio today called on Governor Paterson to immediately rescind the increase in the health insurance tax that was enacted recently by Governor Paterson and Senate Majority Leader Malcolm Smith.

“Two weeks ago, Governor Paterson and the Senate Democrats pushed through a disastrous plan that will increase health insurance premiums by more than a third for businesses, families and individuals,” said Senator Nozzolio.  “I oppose this increase because it will make health insurance unaffordable to many individual families, force many businesses to stop offering health insurance for employees altogether, or worse yet - to close their doors. This action will simply cost jobs, drive up the number of uninsured New Yorkers, and ultimately cost the taxpayers more money in the long run.”

“In response to the outrage expressed by people all across New York, Governor Paterson has mentioned the possibility of restoring some of his proposed cuts to health care and using stimulus funds to increase state support for preventative care,” Senator Nozzolio continued.  “The most urgent need is to rescind the tax increase and ensure that local businesses can continue to provide health insurance for their employees and their families. More uninsured New Yorkers means less preventative care, more emergency room visits, and higher health care costs for hospitals and for state and local taxpayers.”

Senator Nozzolio is currently advocating for his job development plan that would make health insurance more affordable to businesses, make businesses more competitive and help them create jobs. The Senator's plan includes the following measures to reduce the cost of health insurance for businesses:

  • Expand Healthy NY from 208 percent of the Federal Poverty Level (FPL) to 250 percent of the FPL.  This would make a family of four with an annual net income of approximately $60,000 per year eligible for the program;
  • Make Healthy NY available to all, but at an unsubsidized rate.  Doing so would reduce health insurance costs for small businesses at no cost to the State because qualified businesses would be able to purchase streamlined health insurance policies, which could reduce premiums by up to 50 percent;
  • Exempt high deductible health plans from State mandates, which would have the same effect as allowing insurers to offer Healthy NY at an unsubsidized rate;
  • Require the Department of Labor and the Department of State to study the costs and benefits of allowing businesses to create innovative and flexible heath coverage plans as authorized under federal statute.

“Governor Paterson should the opportunity to roll back his tax increase on health insurance and the tax assessments immediately, and stop the drastic increase in health insurance costs,” concluded Nozzolio.

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