Lawmaker proposes $59 billion state health insurance plan

NEW YORK — A state lawmaker proposed last week that New York create a $59 billion health insurance program that would cover everyone in the state, and probably be paid for through a huge tax increase. The plan, by Assembly Health Committee chairman Richard Gottfried, would replace the private health plans that now provide coverage to residents through their jobs. Gottfried, a Manhattan Democrat, said he is convinced the state could do the job cheaper and more efficiently than private insurers, while offering more generous benefits. He offered no suggestions, however, on how to pay for the plan, which would give New York the country’s largest state-run health program. His office estimated that the current system costs New Yorkers and their employers $63 billion per year. The proposal was applauded by some groups that have lobbied for universal health care, but criticized by others who suggested there was little evidence the state could afford it, or that it could do a better job than the current insurance system. “I’m trying to figure out how somebody can say with a straight face they’re going to double taxes to save money,” said E.J. McMahon, director of the Empire Center for New York State Policy.