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UU Analysis: NYHA Will Add Costs, Eliminate Jobs

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Kristine Hilsdorf

May 15, 2021

Upstate United, a BNP partner organization and non-partisan, pro-taxpayer, pro-economic growth, and pro-Upstate education advocacy coalition, recently analyzed the research on the potential economic impact of the New York Health Act (NYHA).

NYHA would move all state residents onto public plan

If enacted, the NYHA would impose a single-payer healthcare system for all New York residents.  The bill would force New Yorkers off their private health plans and instead put all state residents onto a public plan. Doing so would increase wait times, decrease access to quality care, repel top doctors from working in our state, and put many New Yorkers out of work.

Cuomo: A state-level single payer system is not feasible

Although any single-payer healthcare system has flaws, a state-level single payer system would be particularly problematic. The historic tax increases imposed by this bill would likely drive New York’s highest earners to move to neighboring states. Additionally, offering this level of care to all residents would draw high-need patients from around the country to move to New York. In other words, a state-level single-payer plan would attract those with the highest medical costs and drive out the taxpayers needed to finance the program. Governor Andrew Cuomo has taken the position that a state-level single payer system is not feasible, pointing to failed attempts in Vermont and California.

Upstate United’s analysis confirms the suspected problems with the NYHA, noting that the Act would cause:

  • An additional $253 billion in payroll taxes on employers and workers.
  • A loss of 161,000 jobs statewide, including 50,445 in the Upstate region.
  • A disproportionate number of job losses in Erie County.

UU’s full fact sheet is available here. 

Realities of Single Payer recently released a toolkit to help employers understand and communicate with lawmakers about the consequences of the New York Health Act. The toolkit is available here

Upstate United is a non-partisan, pro-taxpayer, pro-economic growth and pro-Upstate education and advocacy coalition made up of business and trade organizations from across Upstate New York.

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