New York health insurers propose 21% rate hike. Will they get it?
Health insurance providers in New York are seeking an average rate increase of 20.9% next year for individuals and 15.3% for small group plans, state records show.
Insurers say the rate increases are needed, in part, due to the rising prices charged for health care and drugs, as well as government taxes on insurance.
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.
Now, the state Department of Financial Services, which regulates insurers, is 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.
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How much have NY health insurance rates increased?
Meanwhile, the average rates for individual plans have gone up a total of 31.4% since 2019, with an average yearly increase of about 6%, according to a recent Health Plan Association report. For small group plans, that total increase was 30.6%.
The proposed individual rate increases for next year vary from a high of 52.7% through Emblem to a low of 13.3% through MVP Health Plan.
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, the report asserted.
From 2017 to 2021, for example, the price of health care services grew nearly 14% nationally, while increasing more than 18% in New York, the report noted.
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Health insurers also requested 2024 Medicare supplement plan average rate increases of 16.2% for individuals and 12.4% for the group market, state records show.
The proposed individual rate increases vary from a high of 46.8% through Excellus Health Plan to a low of 3% through American Progressive Life and Health Insurance Company of New York.
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What insurers say about 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."
For details on proposed rate increases, visit the Department of Financial Services website, at dfs.ny.gov, or call its hotline at (800) 342-3736.
This article originally appeared on Rockland/Westchester Journal News: New York health insurers propose 21% rate hike. Will they get it?
