The lower house of the New York legislature has passed a bill authorizing a single-payer plan for the state of New York. Via Modern Healthcare:
New York’s state Assembly passed a single-payer healthcare bill Tuesday that would provide universal coverage statewide. However, the bill faces a difficult path through the Republican-controlled state Senate, and economists have conflicting views on how it would affect spending and taxation.
The bill’s sponsor, Manhattan Democrat Richard Gottfried, said House Republicans’ passage of the American Health Care Act makes it more important that the state Legislature act to preserve affordable healthcare.
“As bad as things are today … what Washington is looking at doing to Medicaid and Medicare and private insurance is going to make it a lot worse,” he said.
The New York Health Act, which previously passed the Assembly three times but stalled in the Senate, would provide no-cost coverage to every New Yorker with no out-of-pocket costs and no network restrictions. It would be paid for through a progressive payroll tax and levies on non-earned income, such as capital gains. A 2015 analysis from Gerald Friedman, professor of economics at the University of Massachusetts at Amherst, showed a potential savings of $45 billion in the first year of implementation
There are some estimates that the plan would require a four-fold increase in New York’s state taxes. Given that the plan has been rejected by the New York Senate three times this certainly looks like posturing.