New York Health Insurers Propose 21% Rate Hike: Will It Be Approved?

Health insurance companies in New York are suggesting an increase in prices by 21%. Will they be allowed to do it? Health insurance companies in New York want to raise the prices for individual plans by about 20.9% and for small group plans by around 15.3% next year. 

They say they need to do this because the costs of healthcare and medicine are going up, and the government taxes insurance. The changes they are suggesting would affect many New Yorkers who have individual or small-group health plans. 

These plans are either directly from private insurance companies or through the state's health exchange, the NY State of Health. Right now, the state Department of Financial Services, which oversees insurance companies, is looking into these proposals. 

They will review the rates and might make some changes before deciding on the rates for 2024 in August. In the past, the state agency has often lowered the rates from what the insurance companies initially asked for.

Just last year, the authorities agreed to raise rates by 9.7% for individual health plans and 7.9% for small group plans. This was lower than what the insurance companies originally asked for, which was 18.7% and 16.5%, respectively.

How much have the health insurance prices in NY gone up?

Now, let's talk about how much the rates have gone up over the years. Since 2019, the average rates for individual plans have increased by a total of 31.4%. 

That means, on average, the rates have gone up by about 6% each year. For small group plans, the total increase has been 30.6%.

Next year, the suggested rate increases for individual health plans differ greatly, ranging from a high of 52.7% with Emblem to a low of 13.3% with MVP Health Plan.

Health insurance costs in New York are some of the highest in the country, mainly because the prices for healthcare services are much higher than the national average, according to the report.

Between 2017 and 2021, the cost of healthcare services increased by nearly 14% nationally, but it went up by over 18% in New York, as stated in the report.

How much are the rates for Medicare supplement plans going up?

According to state records, health insurers have asked for higher rates for Medicare supplement plans in 2024. They are proposing an average increase of 16.2% for individuals and 12.4% for group plans.

The suggested rate increases for individual plans vary widely. The highest increase, 46.8%, is requested by Excellus Health Plan, while the lowest increase, only 3%, is proposed by the American Progressive Life and Health Insurance Company of New York.

This what insurance companies are saying about raising their Rates

The Health Plan Association, which speaks for insurance companies, criticized the state's past practice of significantly reducing their rate increase requests. They see this as a negative thing that will affect healthcare.

The group says that lower rate approvals make it hard for health plans to invest in improving care quality, moving towards value-based payments, reducing health inequalities, and other efforts to enhance the health of New York residents.

On the other hand, state regulators defend their decision to keep rates lower than what insurers ask for. They aim to prioritize the financial well-being of consumers while ensuring a strong and stable health insurance market for New Yorkers.

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