Bill
A 5743
Bill A 5743 taxes out-of-state health insurers on certain transactions, aiming to boost state revenue and ensure fair contributions to the local economy.
Bill Number: A 5743
Title: Imposes a tax on out-of-state transfers, dividends, payments, and loans by certain accident and health insurance companies and health maintenance organizations
Status: Referred to Insurance
Introduced: February 20, 2025
Classification: Bill
Bill A 5743 aims to impose a tax on specific financial transactions conducted by out-of-state accident and health insurance companies and health maintenance organizations (HMOs). The primary intent of this legislation is to generate revenue for the state while ensuring that these entities contribute fairly to the local economy, particularly when they engage in financial activities that affect residents.
Tax Imposition: The bill proposes a tax on:
Scope of Taxation: The tax will specifically target transactions that occur outside the state but have implications for in-state policyholders or beneficiaries.
Regulatory Framework: The bill outlines the regulatory framework for how the tax will be assessed, collected, and enforced, ensuring compliance among the affected entities.
Insurance Companies and HMOs: The primary entities impacted by this bill are out-of-state accident and health insurance companies and HMOs that conduct business in the state.
Policyholders: Residents who hold policies with these companies may experience changes in their insurance costs or benefits as a result of the tax.
State Revenue: The state government is expected to benefit financially from the additional tax revenue, which could be allocated to various public services or health programs.
Legislative Process: As of the introduction date, February 20, 2025, the bill has been referred to the Insurance Committee for further consideration.
Related Legislation: This bill is related to prior-session bills A 9519 and A 3885, as well as companion bill S 3814, which may address similar issues or provide additional context for the current proposal.
Bill A 5743 represents a significant step towards regulating the financial activities of out-of-state insurance entities operating within the state. By imposing a tax on specific transactions, the bill seeks to ensure that these companies contribute to the state's economy while potentially impacting the cost and availability of health insurance for residents. The bill is currently under review by the Insurance Committee, and its progress will be closely monitored by stakeholders in the insurance and healthcare sectors.
Compiled from official sources — confirm details with the bill’s official record.
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