In the 2009-2010 New York State Budget, Governor Paterson seeks to impose a $1 tax fee for every medical, dental, or vision claim or prescription drug benefit over $20. The New York State Budget must be approved by the New York State Assembly and State Senate and signed into law by Governor Paterson by April 1, 2009.

“Governor David Paterson’s $1 Health Care Claim Surcharge goes in the opposite direction of the Obama Administration’s Health Care for All Campaign, and will hurt union members, small businesses, and taxpayers, “ charged a coalition led by the New York State AFL-CIO and BALCONY, the Business and Labor Coalition of New York.

“The administration has almost a half billion dollar per year hidden and concealed taxes on health insurance participants. The $1 Health Care Claim Surcharge and other taxes are totally counterproductive to the spirit of President Obama’s plans for Affordable Health Care for All, “ stated BALCONY Co-Chair Alan Lubin, Executive Vice President of NYSUT. “We must not balance the state budget on the backs of working men and women. “

The alternative, favored by the New York State AFL-CIO is to tax businesses that refuse to provide health care for their employees, instead of piling additional fees upon those that are already complying with the widely-felt mandate for affordable health care for all that has become a centerpiece of the Obama Administration. There was widespread agreement in the room that alternatives to the Governor’s plan must close the existing shortfall. The “uncovered lives” tax is the most equitable way to close the existing shortfalls, and pushes New York State closer to its desired goal, the provision of affordable health care for each and every citizen.

Call Governor Paterson at 877.255.9417 and tell him that that this $1.00 surcharge (The Third Party Administrator Claims Handling Tax) is bad policy and that he can’t balance the budget on the backs of the middle class. Urge him to adopt the AFL-CIO’s position to tax companies that won’t provide health care for their workers.