The Daily Shot, Ricochet, May 18, 2017
Tuesday night the New York State Assembly passed the New York Health Plan, a scheme to abolish all private health insurance and replace it with a statewide single payer system. Covering everyone except for people on Medicare and Medicaid.
Unfortunately for do-gooder progressives in the Empire State, the program has a fatal flaw: the price. You see, last year the state extorted, er, collected $71 billion in tax revenue. When the plan would go into effect, in 2019, that number is expected to be $82 billion. That sounds like a lot, except that that the New York Health Plan will cost $91 billion. That’s to say nothing of the massive disruptions it would cause for everyone, just to cover the nine percent of New Yorkers without health insurance. (And that’s in a state with one of the most generous Medicaid systems in the nation.)
And that’s the low number! According to a report from the Foundation for Research on Equal Opportunity, penned by Ricochet’s own Avik Roy, the price tag could be as high as $226 billion. Enormous program costs, and their accompanying necessary tax increases, are what sank both Vermont’s aborted single-payer plan and the proposed single-payer system in Colorado.
Luckily for Empire State taxpayers, who are already crushed under the heaviest tax burden in the nation, the measure, which passed the Assembly in 2015 and 2016, still needs to pass the Senate. Currently the body is split 31-31, with one open seat to be filled by a special election on May 23. However, it’s far more complicated than that.
So while you never know in New York, the New York Health Plan probably won’t make it to Cuomo’s desk.