Large Health Insurance Increase Approved In New York State
The cost of health insurance is increasing for many New Yorkers. While the increase is large, officials say it could have been a much bigger rate hike.
On Friday, the New York State Department of Financial Services approved health insurers’ premium rate increases for 2025.
Health Insurance Increasing In New York
The state is approving a rate increase of about 12.7 percent for individual plans and an 8.4 percent jump for small group plans.
While this increase may appear jarring, (I think it is), it's not as much as what health insurers were requesting. According to the New York State Department of Financial Services, health insurers wanted increases of 17 to 19 percent.
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Officials say this saves New Yorkers and small businesses in the Empire State "approximately $853 million."
"In the individual market, the New York State Department of Financial Services reduced insurers’ requested rates 23%. In the small group market, DFS reduced insurers’ requested rates 55%. Approximately one million New Yorkers are enrolled in individual and small group plans," the New York State Department of Financial Services states.
Reason For Health Insurance Increase In New York
State officials say the increase, which impacts about 1 million New Yorkers, is due to a rise in medical costs including hospital stays and prescription drugs.
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"The rising cost of medical care, including in-patient hospital stays as well as rapid increases in drug prices, continues to be the main driver of health insurance premium increases. In light of the continued increases in costs of health care and other consumer goods and services, DFS held insurers’ profit provisions to only 1.0%," the New York State Department of Financial Services adds.
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The rate hikes go into effect in 2025.
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