Another Blow to NJ Insurance Rates
New Jersey is a state known for having the highest insurance rates in the nation, specifically when it comes to auto coverage. Unfortunately, a move to balance the state’s budget may mean they have the highest health insurance rates as well. Local legislature is considering tax hikes on certain insurance premiums that will ultimately leave more of the state’s residents without affordable health care options.
Tax Hikes Raise Rates
Anymore tax hikes could break an already weak system. For example, Prudential Insurance already pays an astonishing $12-$14 million in taxes in New Jersey. Additionally, Prudential pays $10 million to other states that generally base their taxes on multi-state insurers to the home state tax rate. If the increase passes as penned, Prudential will be responsible for another $6 million dollars in taxes. Prudential’s long-term care and various disability policies would be the hardest hit by the tax increase.
The additional charges would surely be passed onto consumers in the form of Prudential insurance rates, and it would stand true for other providers as well. If passed, the bill would ultimately make a whole slew of insurance unaffordable for those who are already balancing on the financial edge.