Individual plans for those eligible for the federal tax credit will cost even less, the agency said. Last year, more than 60% of New Yorkers who purchased individual plans through the New York State Health State, the state’s insurance marketplace, were eligible for tax credits that reduce their premiums.
The ministry has cut the proposed fee for small-group plans for businesses with 100 or fewer employees by about half, which it says will save small businesses $607 million next year. About 800,000 New Yorkers are covered by the small business plan.
Next year’s rate hikes are broadly in line with the agency’s decision on rates for 2023, indicating rising claims costs for health insurers. Last year, the ministry approved a 9.7% price increase for individual plans and a 7.9% increase for small group plans, following the lowest individual price hike ever during the COVID-19 pandemic.
Financial Services Department spokeswoman Ciara Marangus said the department reviews each application to ensure that the approved rate is sufficient to cover the insurer’s estimated medical claims.
“The medical costs associated with these claims continue to rise, and as a result, premiums are also rising,” Marangus said.
Eric Linzer, chairman and CEO of the New York Health Plan Association, said in a statement that the rates proposed by health insurers in May reflected rising medical costs. .
“Health care costs in New York are among the highest in the nation,” said Mr. Linzer, adding that rising health care costs are due to high reimbursement claims from hospitals and doctors, double-digit growth in prescription drug prices, and a government health tax. pointed out that Insurance company.
“Given these factors, greater focus is needed to contain the rising costs that hospitals, health care providers and pharmaceutical companies are charging to help consumers and employers,” said Linzer. said Mr.
“The rates really reflect the underlying cost of health care,” said Leslie Moran, senior vice president of an association representing 28 New York state insurers. “Decreasing demand for plans could lead to shortages in the future.”
IHBC, a subsidiary of the Independent Health Council, has been approved to raise individual plan premiums by 25.3%, the highest of any insurer in the state. The provider he requested an increase of 39.2%.
Emblem Health, which covers 3 million people in the New York Tristate area, has been approved for a 25.1% price increase on its individual plans. Provider he requested an increase of 52.7%.
Kim Kang, vice president of public affairs at Emblem Health, said insurers “are very considerate of the impact of rate hikes on policyholders.”
“The rate increases we requested reflect the medical bills provided to our members, many of whom are seriously ill,” Kang said. “We are committed to continuing to work with lawmakers, state officials, health care providers and others to address the impact of affordability and healthcare disparities in New York State.”
According to the ministry’s list of approved rate measures, no insurers are planning to cut rates next year.
The rate hike will not affect members of New York City’s Essential Plan, a low-cost public insurance option that does not charge premiums to qualifying New Yorkers. The Essential Plan currently covers individuals up to 200% of the federal poverty threshold, but government officials this year have applied for a federal waiver that expands eligibility to people with incomes up to 250% of the poverty line. submitted to the government.
