New York Health insurance
Health insurance providers in New York are proposing an average rate increase of 20.9% for individuals and 15.3% for small group plans next year. The insurers say that the rate hikes are necessary due to the rising costs of healthcare and drugs, as well as government taxes on insurance.
How Will the Proposed Rate Hike Affect New Yorkers?
If approved, the proposed changes would impact millions of New Yorkers who are enrolled in individual and small group plans directly through private insurers or through the state’s health exchange, NY State of Health. The average rates for individual plans have gone up a total of 31.4% since 2019, with an average yearly increase of about 6%. For small group plans, that total increase was 30.6%. Health insurance premiums in New York are among the nation’s highest due in large part to the prices charged for health care services, which are much higher than the national average.
Will the State Approve the Proposed Rate Hike?
The state Department of Financial Services, which regulates insurers, is currently reviewing the rate proposals and will consider adjustments before finalizing the 2024 rates in August. Historically, the state agency has significantly reduced the rates from those sought by insurers. Last year, for example, regulators approved average rate increases of 9.7% for individuals and 7.9% for small group plans. That was down from the 18.7% and 16.5%, respectively, sought by insurers.
What Do Insurers and Regulators Say About the Rate Increases?
The Health Plan Association, which represents insurers, described the state’s practice historically to slash rate-increase requests by double-digit percentages as an act of “suppression” that will negatively impact health care. The lower rate approval levels, the group said, “make it difficult for health plans to make ongoing investments in efforts to improve the quality of care, continue the progress in moving towards value-based payment arrangements, programs to reduce health inequities and other measures that improve the health and wellness of New York residents.” In contrast, state regulators have defended keeping rate increases lower than insurers requested, noting the goal is to “prioritize the financial well-being of consumers while ensuring that New Yorkers have access to a robust, stable health insurance market.”
What Can New Yorkers Do If the Rate Hike Gets Approved?
For details on proposed rate increases, visit the Department of Financial Services website or call its hotline. New Yorkers can also consider shopping around for alternative health insurance plans or negotiating with their existing insurers for better rates.
In conclusion, the proposed rate hike by health insurance providers in New York is causing concern among millions of New Yorkers. While the insurers say the rate increases are necessary, state regulators have historically reduced the rates from those sought by insurers. It remains to be seen whether the proposed rate hike will be approved, and New Yorkers may need to consider alternative options if it is.