A provision in New York Governor David Paterson's Deficit Reduction Plan to increase assessments by $180 million on all insurers, and additional amounts for health insurers, has drawn criticism from a state insurance association.

Ellen Melchionni, president of the New York Insurance Association, called assessment increases a "back-door tax."

In December, Ms. Melchionni criticized a separate proposed $140 million assessment, which she said may still be in play and assessed on top of the recently announced $180 million tab.

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