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Uncovering a hidden health care cost

By Linda Imhauser

My recent hospital bill had an asterisk at the bottom noting, “includes New York State surcharge tax,” so I decided to investigate. I was shocked to discover that since 1996 New York State has imposed a 9.63% surcharge on patient care from licensed health care providers. Every time we go to a hospital or a clinic or to a doctor’s office, the state adds a 9.63% surcharge to the bill. While insurance companies pay the surcharge, they pass it on to patients directly or through higher premiums.

This surcharge has been in effect for almost 20 years, but strangely it’s only been indicated on some medical bills since last year, when over $2.8 billion was collected. New York is one of only a few states that provide health care for all residents regardless of their immigration status or ability to pay. These billions in surcharge are used for Medicaid and to cover those who are uninsured or can’t pay.

Health care is increasingly unaffordable. Many people with coverage don’t get needed care because they can’t afford the high co-pays and deductibles after paying their premiums. Meanwhile, all New Yorkers receiving medical care must pay extra to cover the poor, while the rich get new tax breaks on their estates, yachts and private planes. If corporations and the obscenely wealthy residents of New York had to pay their fair share, maybe the rest of us wouldn’t have to pay surcharges in addition to high taxes.

Linda Imhauser

Whitestone