Hospitals and clinics in New York City are facing increased taxes as the Affordable Care Act rolls out medical insurance coverage for the practice of acupuncture, the Associated Press reported.
The tax hit was due to the Affordable Health Care Act’s medical insurance marketplaces that have been flooded with people seeking care.
The tax applies to all health insurance policies, but it applies only to plans with deductibles above $7,500, and no limit on the amount covered.
In an email, a spokesperson for the New York State Department of Health said the state is working with the Department of Insurance and the Insurance Department of New Jersey on how to offset the impact of the tax on the New Jersey medical insurance marketplace.
The spokesperson said that New Jersey is working to make the tax refundable and to ensure that all policies that have dental or vision insurance are exempt from the tax.
New Jersey’s insurance market is expected to expand by about 300,000 enrollees, according to the Department.
The state has been hit with a $2.2 billion state-imposed cost of covering people with pre-existing conditions in 2018.
In a statement to ABC News, a representative from the insurance exchange said: “The New York state Department of Finance is working closely with the Insurance Commission of New York to address the impact this tax may have on the insurance marketplace.”ABC News’ Ben Bazzano contributed to this report.