New York Business Groups to Governor Hochul: No New Health Care Costs
Employers urge rejection of proposals that will increase their health insurance
Albany — As employers prepare for the annual open enrollment season, New York’s business associations are calling on Governor Hochul to reject proposals the Legislature passed during the 2024 session that will increase the cost of their health insurance.
“Health care costs for employers in New York are among the highest in the nation due, in part, to measures imposed by government including taxes, mandated benefits and restrictions on cost sharing,” said Chelsea Lemon, Director of Government Affairs for the Business Council of New York State. “Several pending proposals will further drive up the cost of coverage, hurting employers and their employees, and we urge the Governor to reject them.”
New York has more than 70 mandated benefits that require coverage of more than three dozen types of treatments or services. During the recently completed Legislative Session, lawmakers approved nearly a dozen bills that would require coverage of new mandated benefits or place restrictions on cost sharing, which will lead to higher premiums.
The collective cost of new coverage requirements and limits on cost sharing, coupled with existing mandated benefits, significantly drives up health care costs for employes and falls disproportionately on small and medium-sized businesses.
“Year-after-year, the cost of health insurance ranks as the most burdensome problem for small businesses in New York,” said Ashley Ranslow, NFIB New York State Director. “It is crucial that the state refrain from adding to this burden at the same time our small business owners are being overwhelmed with rising costs across the board and are uncertain about the future of their businesses. We ask that the Governor reject these bills.”
Late last month, a broad coalition of business groups sent a letter to the Governor calling on her to veto these bills as they will translate into higher health care costs for employers, particularly small businesses, and exacerbate the challenges they face in continuing to provide coverage to their employees.