February 4, 2020

Honorable Andrea Stewart-Cousins, Honorable Carl Heastie,

Senate Majority Leader Assembly Speaker
Room 907 LOB Room 932 LOB
Albany, NY 12247 Albany, NY 12247

Dear Majority Leader Stewart-Cousins and Speaker Heastie,

The New York Daily News recently reported1 that the new Medicaid Redesign Team
(MRT II) could consider expanding last year’s $100 million tax on prescription opioids to
other medications. We write today to express our opposition to any effort that imposes
new taxes on prescription medications, and respectfully request your leadership in
addressing our concerns during the current legislative session.

The opioid tax went into effect in July 1, 2019, and while it was originally intended to be
dedicated toward programs that lessen and mitigate opioid abuse, the final enactment
directed all revenue to the General Fund. Given this year’s $6 billion budget deficit and
the Governor’s directive that the MRT II look for “new resources” to fill that gap, we are
gravely concerned that this imprudent tax will be expanded to other medications.

Just as many warned, the enactment of the opioid tax sets a dangerous precedent
resulting in less access and more costs for patients who rely on these important
medications. These outcomes are unacceptable, especially as New York lawmakers
aim to lower healthcare and prescription drug costs.

1
Cuomo’s Medicaid plan causes fear of service cuts and a hike in health insurance taxes”

https://www.nydailynews.com/news/politics/ny-cuomo-medicaid-budget-20200122-ay7ivs7yrjdmdk2huehkoiol6a-story.html
Healthcare costs remain one of the biggest burdens our businesses face. In fact,
according to a recent report by the NYS Health Foundation, per-person spending on
health care in New York has consistently been higher than the national average, and
the gap is growing.

Taxes, like the opioid tax, only make things more difficult for businesses, increasing the
price of health insurance further and harming employees. Not to mention the
devastating impacts it is beginning to have on many healthcare facilities—some of the
largest job creators in communities throughout our state.

The business community respectfully requests that the MRT II and lawmakers reject
any policy that taxes a legitimate pharmaceutical product. This session, we encourage
you to work alongside the healthcare and business communities to implement policies
that ensure responsible funding for needed government programs while avoiding the
imposition of additional costs on the business and patient communities.

Thank you for your consideration of our perspective and we look forward to working with
you to address our concerns during this session.

Sincerely,

The Business Council of New York State

North Country Chamber of Commerce

Rockland Business Association

Capitol Region Chamber

Greater Rochester Chamber of Commerce

Seneca County Chamber of Commerce

Fulton Montgomery Regional Chamber of Commerce

Centerstate CEO

Greater Binghamton Chamber of Commerce

Unshackle Upstate

Cortland County Chamber of Commerce

Business Council of Westchester